Bitcoin miners urged to cover costs with $40B in depreciating currency

Bitcoin (CRYPTO:BTC) mining firms are advised to hold their mined Bitcoin and use it as collateral for fiat loans to cover operating expenses rather than selling their BTC, according to John Glover, chief investment officer at Bitcoin lender Ledn.

Glover explained that retaining Bitcoin offers benefits such as price appreciation, tax deferment, and the opportunity to generate additional income by lending out BTC held in corporate treasuries.

“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,” he stated.

This approach mirrors strategies used by companies like Strategy, which raise capital through corporate debt and equity to acquire Bitcoin, capitalising on the divergence between Bitcoin’s fundamentals and those of fiat currencies.

The Bitcoin mining industry faces increasing challenges, including high competition and rising capital costs as more powerful computing equipment is deployed to secure the network.

Trade tariffs imposed by the Trump administration have raised concerns about higher import costs for mining hardware such as ASICs, potentially pushing expenses to unsustainable levels.

In March 2025, mining firms sold over 40% of their mined Bitcoin amid macroeconomic uncertainty and fears of rising costs due to trade tensions, marking the highest monthly miner liquidation since October 2024.

This sell-off reversed a trend that began after Bitcoin’s halving event in April 2024.

Glover suggests that Bitcoin-backed loans could provide a financial lifeline for miners navigating these pressures by allowing them to maintain exposure to Bitcoin’s potential upside while managing fiat obligations.

At the time of reporting, the Bitcoin (BTC) price was $94,331.44.