Bitcoin (BTC) mining corporations ought to maintain their mined Bitcoin and use it as collateral for fiat-denominated loans to pay working bills as a substitute of promoting BTC and shedding the upside of an asset that miners anticipate to surge in value, in keeping with John Glover, chief funding officer at Bitcoin lending agency Ledn.
In an interview with Cointelegraph, Glover stated that holding onto the BTC carries a number of advantages together with, value appreciation, tax deferment, and the potential to make further income by lending out BTC held in corporate treasuries. The chief added:
“If you’re mining, you might be producing all this Bitcoin. You perceive the thesis behind Bitcoin and why it’s seemingly going to proceed to understand sooner or later. You don’t want to promote any of your Bitcoin.”
This debt-based strategy is just like firms like Technique, which challenge company debt and fairness to finance Bitcoin acquisition and revenue from the diverging fundamentals of BTC and the fiat currencies the company capital raises are denominated in.
Bitcoin-backed loans could possibly be a worthwhile lifeline for miners struggling within the extremely aggressive business, which is facing increased pressure as a result of ongoing commerce tensions introduced on by the Trump administration’s protectionist commerce insurance policies and macroeconomic uncertainty.
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Commerce struggle locations much more stress on beleaguered mining business
The Bitcoin mining business is characterised by excessive competitors and capital prices that improve over time as extra highly effective computing assets are used to mine blocks and safe the community.
US President Trump’s sweeping commerce tariffs have solid a cloud over the already aggressive sector, elevating fears that import duties will raise the cost of mining equipment, like application-specific built-in circuits (ASICs), to unsustainable ranges.
Mining corporations collectively sold over 40% of their mined supply produced in March 2025 amid the heightened macroeconomic uncertainty and fears that the continuing commerce tensions will trigger value will increase throughout the board.
Based on TheMinerMag, this 40% sell-off marked the reversal of a development that started post-halving, in April 2024, and represented the best month-to-month BTC liquidation amongst miners since October 2024.
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