Ledn Exec: Miners Should Borrow Fiat, Not Sell Bitcoin

Bitcoin miners should use BTC as collateral to take fiat loans instead of selling coins, says Ledn CIO. This strategy preserves upside, reduces taxes, and creates additional yield potential.

Holding Bitcoin Offers Strategic Benefits

John Glover, CIO at Bitcoin lending firm Ledn, believes miners should avoid selling BTC. Instead, he suggests using it as collateral for fiat-denominated loans to cover expenses.

This approach, Glover explains, retains the upside potential of Bitcoin, allows for tax deferral, and opens up yield opportunities through lending BTC from treasury reserves.

Strategy’s Model Applied to Mining Firms

The strategy mirrors corporate practices at firms like Strategy, which raise debt and equity to acquire Bitcoin. These companies profit from the growing divergence between fiat currencies and BTC fundamentals.

Miners could benefit from this model amid increasing competition and tight capital conditions. Fiat-backed loans offer a financial buffer without sacrificing long-term BTC holdings.

Trade War Increases Industry Strain

US trade tariffs under Trump’s protectionist policies are making things worse for miners. Increased import costs, especially on ASICs, are raising fears of unsustainable operating expenses.

Miners sold over 40% of their March 2025 BTC production, reversing a post-halving accumulation trend. TheMinerMag reports this was the largest monthly sell-off since October 2024, highlighting growing economic stress.