Bitcoin miners should pay costs in depreciating currency — Ledn exec
Bitcoin (BTC) mining firms should hold their mined Bitcoin and use it as collateral for fiat-denominated loans to pay operating expenses instead of selling BTC and losing the upside of an asset that miners expect to surg...
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Bitcoin (BTC) mining firms should hold their mined Bitcoin and use it as collateral for fiat-denominated loans to pay operating expenses instead of selling BTC and losing the upside of an asset that miners expect to surge in price, according to John Glover, chief investment officer at Bitcoin lending firm Ledn.
In an interview with Cointelegraph, Glover said that holding onto the BTC carries several benefits including, price appreciation, tax deferment, and the potential to make extra revenue by lending out BTC held in corporate treasuries. The executive added:
"If you are mining, you are generating all this Bitcoin. You understand the thesis behind Bitcoin and why it is likely going to continue to appreciate in the future. You do not want to sell any of your Bitcoin."This debt-based approach is similar to companies like Strategy, which issue corporate debt and equity to finance Bitcoin acquisition and profit from the diverging fundamentals of BTC and the fiat currencies the corporate capital raises are denominated in.
BTC mining hashprice, a metric used to gauge miner profitability, has collapsed as ever-increasing computing resources are deployed to secure the network. Source: Hashrate IndexBitcoin-backed loans could be a valuable lifeline for miners struggling in the highly competitive industry, which is facing increased pressure due to the ongoing trade tensions brought on by the Trump administration's protectionist trade policies and macroeconomic uncertainty.
Related: Riot Platforms secures $100M ‘Bitcoin-backed’ loan from Coinbase
Trade war places even more pressure on beleaguered mining industryThe Bitcoin mining industry is characterized by high competition and capital costs that increase over time as more powerful computing resources are used to mine blocks and secure the network.
US President Trump's sweeping trade tariffs have cast a cloud over the already competitive sector, raising fears that import duties will raise the cost of mining equipment, like application-specific integrated circuits (ASICs), to unsustainable levels.
Mining firms collectively sold over 40% of their mined supply produced in March 2025 amid the heightened macroeconomic uncertainty and fears that the ongoing trade tensions will cause price increases across the board.
According to TheMinerMag, this 40% sell-off marked the reversal of a trend that began post-halving, in April 2024, and represented the highest monthly BTC liquidation among miners since October 2024.
Magazine: Korea to lift corporate crypto ban, beware crypto mining HDs: Asia Express
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This mining story adds another data point to the current market tape and is useful when read alongside nearby source coverage.
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