Why Do Crypto Mining Companies Need to Use Block Trading?
Crypto mining companies accumulate large amounts of newly minted coins as part of their operations. They need to sell these coins to cover significant operational costs like electricity, hardware, and salaries.
Selling these large quantities on a public exchange would create downward pressure on the coin's price, hurting their own profitability and the market. Block trading allows them to sell their holdings directly to a large buyer at a fixed price, ensuring they can fund their operations without causing market instability.
Glossar
Crypto Mining Companies
Operation ⎊ Crypto mining companies are industrial-scale entities that utilize specialized hardware and substantial energy resources to validate transactions and secure proof-of-work blockchains, receiving newly minted cryptocurrency as a reward.
Mining Companies
Extraction ⎊ Mining Companies, within the cryptocurrency ecosystem, represent entities focused on the validation of blockchain transactions through computational power, directly impacting network security and block creation rates.