Bitcoin Mining Firms Urged to Hold BTC Amid Economic Pressures
Bitcoin mining companies are advised to retain their mined Bitcoin and use it as collateral for fiat-denominated loans to cover operational costs, according to John Glover, chief investment officer at Ledn. This strategy aims to prevent miners from selling their Bitcoin and missing out on potential price surges.
Benefits of holding Bitcoin:
- Price appreciation
- Tax deferment
- Additional revenue through lending
The Bitcoin mining industry faces challenges, including declining profitability and increased pressure due to trade tensions and macroeconomic uncertainties. Bitcoin-backed loans could provide a lifeline for struggling miners.