Coin Metrics Reports Increased Bitcoin Sales by Small Miners

In the first quarter of 2025, bitcoin flows to exchanges from large miners remained relatively stable, while sales volumes by smaller industry players steadily increased, according to a report by Coin Metrics.

New @Coinmetrics State of the Network: Q1 2025 Bitcoin Data Special
By @TanayVed

One year post-halving, Bitcoin miners are adapting- but pressure is mounting.

Key insights from this issue:

— Miner revenues have stabilized (~$3.6B in Q1), but fees still make up just 1.33%

-… pic.twitter.com/Xjlr4SgBsX

— CoinMetrics.io (@coinmetrics) March 25, 2025

Analysts estimate that the industry has experienced a period of stabilization following the April 2024 halving, having “adapted to the reduction in block rewards, tighter margins, and changing operational dynamics.”

Larger-capitalized miners found themselves in a better position. They were able to switch to more efficient equipment and deploy it in regions with cheaper electricity. Some major companies, such as Core Scientific, diversified their business into the highly profitable field of AI computing, noted Coin Metrics experts.

During the quarter, the total revenue of bitcoin miners amounted to a “healthy” ~$3.6 billion. However, the share of fees in this figure was only 1.33%.

“As block rewards decrease, maintaining incentives for miners in the long term may require larger transactions and increased competition for block space to generate substantial network fee revenue,” analysts emphasized.

They also highlighted several trends:

• Devices from the Chinese manufacturer Bitmain account for up to 76% of the global hash rate, increasing supply chain risks due to geopolitical tensions;
• Activity in the low-cost transaction segment is sharply rising, with transactions under $100 in the first cryptocurrency accounting for about 60% of the total;
• L2 solutions, such as Lightning Network, Stacks, and Botanix, are “gaining momentum,” enhancing scalability, opening new use cases, and laying the foundation for a stronger fee market.

Earlier, Bernstein analysts lowered forecasts for bitcoin miner stocks for 2025. However, the company announced a new phase of the bull market for cryptocurrency, driven by initiatives from the administration of U.S. President Donald Trump.