Bitcoin mining firms are encouraged to hold onto their mined Bitcoin rather than selling it to cover operating expenses. John Glover, chief investment officer at Ledn, suggests that miners leverage their Bitcoin as collateral for fiat loans. This strategy allows miners to avoid losing potential gains from Bitcoin's expected future appreciation. The move is particularly pertinent as mining profitability has declined due to increased computational competition and rising operational costs. Glover highlights benefits such as tax deferment and potential additional revenue from lending Bitcoin. The industry faces challenges exacerbated by macroeconomic uncertainties and rising costs for mining equipment due to trade tariffs. This situation has led to significant sell-offs among miners, suggesting a need for alternative financial strategies to remain viable amidst these pressures.

Source 🔗