Bitcoin miners are long BTC. SHA-256 ASICs are miners’ 𝘱𝘳𝘰𝘰𝘧 𝘰𝘧 𝘴𝘡𝘒𝘬𝘦.

>**”Who goes into the mining business thinking bitcoin is going down in price?”** – Michael Saylor

We’ll use one of our [Mining Insights Profitability Calculator]( to illustrate why miners should not be thought of purely as β€œsellers of BTC” who suppress price increases. **Miners are HODLers too.**

**Scenario #1:**


☝️ This chart is an 18-month cash flow visualization for a miner with 6.8 PH/s of hashrate, all S17 Pros.

Bull market parameters:

– Difficulty increases 4%/month

– Price increases 6.5%/month

In this projection, the miner sells all BTC into fiat each month and has an **end profit: $1.1MM**

**Scenario #2:**


☝️ This chart is for the exact same miner and all of the exact same inputs, with **one difference:**

**HODL Ratio = 100%**

All profits are kept in BTC instead of selling to fiat and the miner ends with an **end profit: $1.9MM**


We added the HODL Ratio input to our Profitability Calculator in order to make it more useful based on [The Intelligent Bitcoin Miner](, a report from Annica Research. It’s a must read for understanding the evolution of the BTC mining industry.

>**”The stupidest thing you can do is sell your bitcoin.”** – Michael Saylor

For miners who want to include their “Long BTC” position in financial calculations, visit: []( and [here]( is an image for reference of all of the other inputs we used.


**Side note.**

These Michael Saylor quotes both come from his fantastic [podcast episode]( with Saifedean Ammous:

[Worth a listen.](

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  1. > HODL Ratio = 100%

    > All profits are kept in BTC instead of selling to fiat and the miner ends with an end profit: $1.9MM

    So they borrow against their bitcoins holdings to pay for electricity, maintenance, HR, etc.? Or do they have to find people/companies willing to get paid in Bitcoin for this? What happens if Bitcoin’s value drops by 50-80% suddenly?

    The second scenario seems a bit idealistic honestly.



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