Last week was a potentially significant stretch for bitcoin and other cryptocurrencies as the largest digital currency traded above $100,000 for the first time in several months.
Miners went along for the ride. The CoinShares Valkyrie Bitcoin Miners ETF (WGMI) gained almost 4%, extending its one-month rally to 19.07%. Alone, that resurgence is positive for investors that have endured 2025 bumpiness in the often-volatile cryptocurrency mining industry, but upon closer examination, there are some encouraging details.
For example, in advance of bitcoin’s recent rally, data indicated miners, including some WGMI holdings, were boosting hash rates – essentially betting that digital currency’s price had more appreciation ahead of it. Second, miners’ bitcoin reserves are holding, signaling they have not been selling.
Why It Matters to WGMI
As of May 5, bitcoin miners, including WGMI members, had more than 1.8 million of bitcoin reserves, or roughly the same amount seen five months prior, according to Crypto News. That’s relevant to investors because it indicates miners aren’t selling bitcoin to finance operations.
“Given that miners typically need to liquidate a portion of their holdings to finance operational
expenses — such as electricity, maintenance, and salaries — their continued restraint from selling
speaks volumes about expectations of future price appreciation,” according to Bitfinex Alpha.
It’s important to note that miners’ reluctance to trim some of their bitcoin reserves is being seen at a time when the digital currency has surged more than 30% off its April lows. In other words, WGMI companies are holding onto their bitcoin even as the asset rapidly appreciates. That could be an indication that miners are finding new ways to address operating costs or that they expect bitcoin will continue soaring over the near-term or both.
As Bitfinex analysts note, the lack of selling among miners could be an indication that “we may not have seen the final leg of the current bull cycle.” Miners, including WGMI holdings, could be signaling that they’re like other bitcoin bulls and want to participate in more near-term upside – a scenario they appear to be comfortable wagering on.
“These stable reserves and low selling pressure reinforce the idea that Bitcoin miners remain confident in the asset’s potential for future gains. While the market remains susceptible to short-term fluctuations, the structural signals suggest that the current cycle may still have room to grow, with miners holding onto their positions in anticipation of further upside, the analysts explain,” reported Crypto News.
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