Bitcoin Miners Sell 40% of Supply Amid Rising Costs and Trade Tensions

Bitcoin miners are currently facing significant challenges due to rising operational costs and macroeconomic pressures. Industry leaders, such as John Glover from Ledn, have suggested that miners should consider holding their Bitcoin rather than selling it to cover costs. This strategy is driven by the expectation that Bitcoin’s price will appreciate significantly, thereby safeguarding their investments and future earnings. Miners are increasingly looking to leverage their mined Bitcoin as collateral for fiat-denominated loans. This innovative financial maneuver not only provides immediate liquidity but also allows miners to benefit from the long-term appreciation of Bitcoin. Glover explains that, effectively, miners should position themselves as asset holders rather than liquidators in an unstable market.

U.S. trade policies, especially those implemented during President Trump’s administration, have further complicated the operational environment for Bitcoin miners. Increased tariffs on imported mining equipment have the potential to inflate operational costs, making it increasingly difficult for miners to stay profitable. The fear of additional trade tensions has amplified the need for miners to adapt their strategies quickly. In a striking turn of events, Bitcoin mining firms collectively sold over 40% of their mined supply in March 2025. This significant sell-off marks the highest monthly liquidation since October 2024, reflecting the industry’s response to soaring operational costs and impending fears of price hikes triggered by economic uncertainties. This trend represents a stark reversal from the post-halving growth observed in April 2024.

With the ongoing pressures faced by the mining sector, Bitcoin-backed loans emerge as a potential lifeline. Companies are exploring these financing options to stabilize their operations without relinquishing their cryptocurrencies. Such financial instruments allow miners to maintain exposure to Bitcoin’s upside while meeting immediate cash flow needs. As the Bitcoin mining industry contends with both external pressures from trade policies and internal challenges related to operational costs, the strategies adopted today will dictate the sector’s success in the coming years. Holding Bitcoin as an asset, rather than liquidating it, may become a defining characteristic of resilient mining firms.

In conclusion, Bitcoin miners are at a crossroads, necessitating profound strategic shifts to navigate a complex and volatile landscape. By holding their mined Bitcoin and leveraging it for financial flexibility, they can guard against unforeseen challenges and harness future opportunities in the ever-evolving crypto market.

Arizona’s Bitcoin reserve bill was vetoed despite passing a narrow House vote. The state’s House narrowly passed Senate Bill 1025, the “Arizona Strategic Bitcoin Reserve Act,” which aimed to establish Bitcoin holdings within Arizona’s official reserves. The legislation would have allowed state officials to manage a digital assets reserve funded through seized monies, positioning Arizona as a pioneer among U.S. states. However, the momentum was halted when Governor Katie Hobbs vetoed the bill, abruptly ending the effort to integrate Bitcoin into the state’s financial strategy. Hobbs wrote in a statement aimed at Warren Petersen, the President of the Arizona Senate, and said, “Today, I vetoed Senate Bill 1025. The Arizona State Retirement System is one of the strongest in the nation because it makes sound and informed investments.” She added, “Arizonans’ retirement funds are not the place for the state to try untested investments like virtual currency.”

The Arizona House’s narrow approval of the Bitcoin reserve bill on the 28th of April marked a significant step toward digital asset integration at the state level. Despite this progress, Governor Katie Hobbs followed through on her earlier stance, vetoing the bill due to the absence of bipartisan consensus on disability funding. She had earlier stated, “Any bill not already on my desk will be vetoed until we have a serious, bipartisan funding solution that protects health care for Arizonans with disabilities.” Meanwhile, a related proposal, SB1373, which seeks to allow the state treasurer to invest up to 10% of Arizona’s rainy-day fund in digital assets like Bitcoin, remains pending a final vote.

Arizona’s attempt mirrors a broader trend across the U.S., where similar legislative efforts in states like Oklahoma, Montana, South Dakota, and Wyoming have also failed to gain traction. While Arizona’s Bitcoin reserve proposal was vetoed, North Carolina is advancing with a more measured approach. On the 30th of April, the state’s House passed the Digital Assets Investment Act, paving the way for the treasurer to allocate up to 5% of select funds into approved cryptocurrencies. The bill now awaits consideration in the Senate. These state-level initiatives echo a broader narrative playing out at the federal level, where Donald Trump and key Republican allies have advocated for a Strategic Bitcoin Reserve. Despite an executive order issued in March, market sentiment, reflected in Polymarket data, showed zero confidence that such a reserve would materialize within Trump’s first 100 days, signaling skepticism around rapid federal adoption.