Wintermute: Miners should put Bitcoin to work as managed assets

As Bitcoin (BTC) miners have struggled in recent years amid deteriorating profitability, calls are growing for them to use their Bitcoin holdings as managed assets to navigate the downturn.

According to Cointelegraph, a digital-asset news outlet, market maker Wintermute said on its website that “Bitcoin miners are under pressure from declining revenues, and to overcome this they need to pivot into artificial intelligence (AI) infrastructure businesses or find ways to generate returns using Bitcoin.”

Wintermute explained that “because miners have built large-scale infrastructure in regions with cheap power, they can provide what the AI industry needs.” Earlier, Marathon Digital Holdings, one of the largest U.S. mining companies, said it could sell part of its Bitcoin holdings to fund an expansion into AI.

Beyond an AI pivot, another option is to actively manage their Bitcoin holdings to generate income. Wintermute noted that “miners, in line with the HODL (long-term holding) culture, hold an amount equivalent to 1% of the total Bitcoin supply,” but added that “miners should use it not merely as a reserve but as a managed asset to secure a competitive edge.”

Wintermute suggested derivatives trading to capture additional returns and earning interest by depositing funds on lending platforms as examples of how miners could manage their Bitcoin holdings.