Bitcoin is increasingly being recognized not just as a speculative digital asset, but as a strategic financial instrument—both at the institutional mining level and within national economic planning. Recent developments show a growing trend of Bitcoin accumulation by miners despite declining revenues, while India’s ruling party is pushing for a sovereign Bitcoin reserve pilot to boost long-term economic resilience.
This dual movement—miners holding firm and governments exploring strategic adoption—signals a maturing ecosystem where Bitcoin’s role extends beyond price volatility into macroeconomic and energy policy.
Bitcoin Miners Accumulate Amid Declining Revenues and Market Pressure
Despite a challenging operating environment, Bitcoin miners are holding onto their BTC at unprecedented levels. According to on-chain analytics firm CryptoQuant, miners have added approximately 4,000 BTC to their reserves since April 2025. This brings the total holdings of mid-sized mining entities (those with between 100 and 1,000 BTC) to around 65,000 BTC—the highest level since November 2024.
👉 Discover how market cycles influence miner behavior and what it means for future price trends.
This accumulation is particularly striking given that daily mining revenues have dropped to a two-month low of $34 million as of June 22. The decline stems from falling transaction fees and a slight pullback in Bitcoin’s price after its recent all-time high. Yet, instead of selling to cover costs, miners are reducing outflows dramatically.
Miner wallet outflows, which peaked at 23,000 BTC per day in February 2025, have now fallen to just 6,000 BTC per day. This shift suggests a fundamental change in strategy: miners are prioritizing long-term value preservation over short-term liquidity.
Miners Face “Extreme Underpayment” After Halving Shock
CryptoQuant’s latest Weekly Report describes current conditions as “extremely underpaid” for miners—the harshest revenue environment in the past year. This pressure follows the April 2025 Bitcoin halving, which cut the block subsidy from 6.25 BTC to 3.125 BTC, effectively halving income for every block mined.
The network’s hashrate has declined by 3.5% over 10 days, the largest drawdown since July 2024. This dip likely reflects stress among less efficient operations, especially those burdened by high energy costs or outdated hardware.
Yet, many large-scale miners remain resilient. CryptoQuant attributes this stability to an average operating margin of 48%, enabling well-capitalized firms to continue accumulating BTC rather than liquidating holdings.
One of the most telling trends is the near-total halt in selling by Satoshi-era miners—early adopters who mined Bitcoin between 2009 and 2011. These entities, often seen as market-moving whales, have sold only 150 BTC in 2025, compared to nearly 10,000 BTC in 2024—a staggering 98.5% decrease.
Historically, movement from these dormant wallets has signaled market tops and triggered retail sell-offs. The current silence may indicate deeper conviction: these long-term holders believe the bull cycle is far from over.
Is This Capitulation—or Conviction?
The reluctance to sell despite shrinking revenues could be a strong bullish signal. In early June, the widely watched Hash Ribbons indicator flashed a classic “buy” signal—a historically reliable marker of market bottoms. This occurs when weaker miners exit the network, leaving behind more resilient operators who accumulate during downturns.
With Bitcoin trading just below its all-time high, miner behavior suggests confidence in further upside. Their refusal to sell at peak prices may reflect expectations of even higher valuations down the line.
This shift has significant implications:
- Reduced sell pressure: Miners are one of the few consistent sources of BTC supply. As they become net accumulators, available supply tightens.
- Supply-demand imbalance: With institutional inflows rising—especially through spot Bitcoin ETFs—and fewer coins hitting exchanges, scarcity dynamics intensify.
- Industry maturation: Strategic reserve management is replacing reactive dumping post-halving, signaling growing sophistication in the mining sector.
Bitcoin is no longer just mined and sold—it’s being strategically held.
India Proposes Sovereign Bitcoin Reserve Pilot to Strengthen Economic Resilience
In a bold policy move, Pradeep Bhandari, national spokesperson for India’s ruling Bharatiya Janata Party (BJP), has called for a sovereign Bitcoin reserve pilot program to enhance national economic resilience and position India as a leader in digital finance.
Bhandari outlined his proposal in an op-ed for India Today, arguing that digital assets are gaining legitimacy on the global stage and that India must act decisively to avoid falling behind.
He pointed to recent developments such as:
- The United States exploring budget-neutral Bitcoin acquisitions
- Three U.S. states authorizing Bitcoin as a reserve asset
- Bhutan leveraging renewable energy for state-backed mining operations
“These are not speculative moves,” Bhandari emphasized. “They represent a calculated recognition of digital assets as tools of economic and geopolitical strategy.”
Bitcoin as a Strategic National Asset
Bhandari argues that India is uniquely positioned to lead in this space due to its rapidly expanding renewable energy infrastructure. With vast potential in solar, wind, and hydroelectric power, India could establish a sustainable, government-managed Bitcoin mining and holding operation without compromising environmental goals.
A state-backed reserve could:
- Attract institutional investment
- Boost innovation in blockchain infrastructure
- Signal India’s commitment to digital leadership
Moreover, such a pilot would allow policymakers to test regulatory frameworks in a controlled environment—paving the way for broader digital asset integration.
India’s Crypto Conundrum: Taxed but Not Regulated
Currently, India taxes cryptocurrency transactions but lacks a clear regulatory framework. Under Section 115BBH of the Income Tax Act:
- Capital gains from virtual digital assets (VDAs) are taxed at a flat 30%
- No loss carryforwards or expense deductions are allowed
- A 1% TDS applies to all transactions over ₹10,000 (~$115), reducing market liquidity
This “tax but don’t regulate” approach has created uncertainty, stifling innovation and discouraging both retail and institutional participation.
Bhandari referenced India’s role during its 2023 G20 presidency, where it led a crypto policy working group with the IMF. However, he warned that global momentum is accelerating—nations like the U.S., Russia, China, and Brazil aren’t waiting for consensus.
“If we delay,” he cautioned, “we risk becoming followers rather than pioneers.”
A Transparent Path Forward
Bhandari advocates for launching a Bitcoin reserve pilot alongside clear, transparent regulations. The framework should be:
- Investor-friendly
- Innovation-enabling
- Consumer-protective
Such a program could serve as a testing ground for public-private partnerships, green mining initiatives, and digital asset custody models—all while building trust with global markets.
Frequently Asked Questions (FAQ)
Q: Why are Bitcoin miners holding despite low revenues?
A: Many large miners maintain healthy operating margins (up to 48%) and view current price levels as transitional. They’re prioritizing long-term accumulation over short-term sales, signaling strong confidence in future value appreciation.
Q: What does the Hash Ribbons indicator suggest?
A: The Hash Ribbons “buy” signal indicates that weaker miners are exiting the network—a typical precursor to market recovery. Historically, this has marked strong entry points ahead of major price rallies.
Q: Who are Satoshi-era miners?
A: These are early adopters who mined Bitcoin between 2009 and 2011. Their wallet movements are closely watched because large sell-offs have previously triggered market corrections. Their current inactivity suggests strong long-term conviction.
Q: Can India legally hold Bitcoin as a reserve asset?
A: Currently, there’s no law prohibiting it, but no formal framework exists either. A pilot program would require new policy guidelines and likely parliamentary discussion.
Q: How would renewable energy support a national Bitcoin reserve?
A: India’s surplus solar and wind capacity could power energy-efficient mining operations sustainably. This aligns with environmental goals while generating strategic digital assets.
Q: What impact could a sovereign Bitcoin reserve have globally?
A: It would signal mainstream acceptance of Bitcoin as a reserve asset, potentially encouraging other emerging economies to follow and accelerating institutional adoption worldwide.
The convergence of miner conviction and national strategic interest underscores Bitcoin’s evolution from speculative asset to foundational component of modern financial systems. As supply tightens and global adoption grows, the stage may be set for the next phase of Bitcoin’s economic ascent.