Yigit Taha OZTURK 
Bitcoin mining firms should avoid selling mined BTC and instead use it as collateral for fiat-denominated loans, said Ledn Chief Investment Officer John Glover. This strategy enables miners to retain appreciating assets, defer taxes, and potentially earn extra income by lending out BTC from their corporate treasuries.
“If you’re mining Bitcoin, you already understand why this asset is valuable long-term,” Glover stated. “You don’t want to sell it.”
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This debt-based approach is similar to strategies used by companies like MicroStrategy, which raise capital through debt and equity to acquire BTC and profit from the currency divergence.
Rising Competition, Falling Margins
The BTC mining hashprice, a key profitability metric, has plummeted due to increasing network difficulty. As more powerful machines are deployed, costs rise and profit margins shrink.
Adding to the pressure, U.S. trade tariffs on tech imports are inflating prices of essential mining equipment like ASICs. These conditions threaten the viability of smaller operators in the sector.
In March 2025, miners collectively sold 40% of their mined supply—marking a trend reversal since the April 2024 halving and the highest monthly liquidation rate since October 2024.
BTC-Backed Loans May Be A Lifeline
In such a climate, Bitcoin-backed loans could be a strategic lifeline. They offer operational liquidity without sacrificing long-term asset value.
As Glover noted, “If you believe BTC will rise, why sell it now and lose future upside?”
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