In response, miners have been selling their reserves, which have decreased to 1.9 million bitcoin as of June 19, the lowest level in 14 years. Larger miners are conserving cash by funding expenditures through mergers and acquisitions, as demonstrated by Hut 8 and US BTC Corp in late 2023. This trend is likely to continue as miners adapt to the challenging environment where USD-denominated revenues are declining.
To sustain their operations, miners—from large public firms to smaller companies—are turning to Gemini’s electronic Over-the-Counter (eOTC) platform to liquidate their BTC holdings. Here’s why Gemini’s eOTC platform is essential for miners:
Gemini’s eOTC Platform: A Lifeline for Miners
Gemini’s eOTC trading desk offers a range of features designed to meet the needs of bitcoin miners seeking quick liquidity. It provides fast trade execution, the capability to handle large transactions, limited spreads, optimal execution, and a secure trading environment.
Miners often need to convert their bitcoin into fiat currency or other digital assets swiftly to cover their ongoing expenses. Given the volatile nature of cryptocurrency markets, delays in converting bitcoin can significantly impact profitability. Gemini’s eOTC platform offers on-demand liquidity, enabling miners to manage their cash flow efficiently, invest in new equipment, and cover operational costs without delay.
Additional Benefits of Gemini eOTC for Bitcoin Miners
- Efficient Net Settlement: The platform offers intraday trading credit, maximizing capital efficiency and trading flexibility. Trades are settled daily at a predetermined schedule in a single net settlement ticket, replenishing trading credit upon completion within Gemini’s secure ecosystem.
- Privacy and Security: As a full-reserve exchange and qualified custodian under the New York Banking Law, Gemini ensures that assets are confidential and secure. The platform is also licensed by the New York State Department of Financial Services (NYDFS) and is SOC 2 Type II compliant.
- Competitive Pricing: The eOTC desk provides competitive pricing, helping miners maximize returns on large-volume trades.
For bitcoin miners looking to learn more about Gemini’s eOTC platform, connecting with the Gemini team can provide further insights and support.