Bitcoin miners should pay costs in depreciating currency — Ledn exec

Bitcoin (BTC) mining firms should clasp their mined Bitcoin and usage it arsenic collateral for fiat-denominated loans to wage operating expenses alternatively of selling BTC and losing the upside of an plus that miners expect to surge successful price, according to John Glover, main concern serviceman astatine Bitcoin lending steadfast Ledn.

In an interrogation with Cointelegraph, Glover said that holding onto the BTC carries respective benefits including, terms appreciation, taxation deferment, and the imaginable to marque other gross by lending retired BTC held successful firm treasuries. The enforcement added:

"If you are mining, you are generating each this Bitcoin. You recognize the thesis down Bitcoin and wherefore it is apt going to proceed to admit successful the future. You bash not privation to merchantability immoderate of your Bitcoin."

This debt-based attack is akin to companies similar Strategy, which contented firm indebtedness and equity to finance Bitcoin acquisition and nett from the diverging fundamentals of BTC and the fiat currencies the firm superior raises are denominated in.

BTC mining hashprice, a metric utilized to gauge miner profitability, has collapsed arsenic ever-increasing computing resources are deployed to unafraid the network. Source: Hashrate Index

Bitcoin-backed loans could beryllium a invaluable lifeline for miners struggling successful the highly competitory industry, which is facing accrued pressure owed to the ongoing commercialized tensions brought connected by the Trump administration's protectionist commercialized policies and macroeconomic uncertainty.

Related: Riot Platforms secures $100M ‘Bitcoin-backed’ indebtedness from Coinbase

Trade warfare places adjacent much unit connected beleaguered mining industry

The Bitcoin mining manufacture is characterized by precocious contention and superior costs that summation implicit clip arsenic much almighty computing resources are utilized to excavation blocks and unafraid the network.

US President Trump's sweeping commercialized tariffs person formed a unreality implicit the already competitory sector, raising fears that import duties volition raise the outgo of mining equipment, similar application-specific integrated circuits (ASICs), to unsustainable levels.

Mining firms collectively sold implicit 40% of their mined supply produced successful March 2025 amid the heightened macroeconomic uncertainty and fears that the ongoing commercialized tensions volition origin terms increases crossed the board.

According to TheMinerMag, this 40% sell-off marked the reversal of a inclination that began post-halving, successful April 2024, and represented the highest monthly BTC liquidation among miners since October 2024.

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