Bitcoin mining companies are getting some strategic financial advice: hold onto your Bitcoin instead of selling it, and use those reserves as collateral for loans to pay the bills. John Glover, a top exec at Bitcoin lending company Ledn, suggests this approach could help miners avoid cashing out their crypto too early and missing big price jumps. He argues that keeping Bitcoin offers perks like potential value growth, delayed taxes, and even extra income if companies lend out their stored crypto. Miners, Glover says, know Bitcoin’s value could skyrocket, so selling now might mean leaving money on the table.
This idea isn’t totally new—it’s similar to how some firms raise cash through debt or stocks to buy Bitcoin, betting on the long-term differences between crypto and traditional money. But miners are in a tough spot right now. Profitability metrics like 'hashprice' are dropping as more miners join the network, making competition fierce. Add to that trade wars, economic instability, and U.S. tariffs under former President Trump, which could hike costs for critical mining gear like ASIC computers. These pressures pushed miners to sell over 40% of their Bitcoin holdings in March 2025—the biggest sell-off since October 2024—as they scrambled to stay afloat amid rising costs and market jitters. This reversed a trend that started after Bitcoin’s April 2024 'halving' event, which slashed mining rewards and initially led companies to hold tighter to their crypto reserves.