Crypto Miners Must Activate Bitcoin Holdings: Wintermute

TLDR

• Wintermute said crypto miners must activate their Bitcoin holdings to manage shrinking margins.
• The firm reported that miners hold nearly 1% of the total Bitcoin supply.
• Publicly listed miners have sold more than 15,000 Bitcoin since October.
• Wintermute stated that Bitcoin failed to deliver the returns needed to offset halving revenue cuts.
• The company urged miners to use derivatives and lending strategies to generate yield.

Crypto miners face tightening margins as the current market cycle fails to match past returns. Wintermute said miners must adapt their Bitcoin strategies to remain competitive. The market maker urged firms to treat holdings as active assets rather than passive reserves.

Crypto Miners and Bitcoin Holdings Face Revenue Squeeze

Wintermute said Bitcoin mining now operates under a “structurally rigid business model” that limits flexibility. The firm stated that miners built large-scale power infrastructure in low-cost energy regions over several years. However, it said those assets now match urgent demand from data-driven computing industries.

The company explained that miners control power capacity that others cannot easily replicate. It described the potential shift toward hosting advanced computing workloads as “a drastic and capital-intensive step.” Meanwhile, MARA Holdings filed with the SEC on March 3 to sell part of its Bitcoin reserves to support a technology pivot.

Publicly listed miners have sold more than 15,000 Bitcoin since October to manage liquidity pressures. Wintermute reported that miners collectively hold nearly 1% of the total Bitcoin supply. It described this stockpile as a legacy of the earlier “HODL era.”

Wintermute stated that Bitcoin has not delivered the two-times price return required to offset halving-driven revenue cuts. It said gross margins have peaked near levels that previously marked bear market floors. At the same time, energy costs continue to pressure operating margins across major mining firms.

The firm added that transaction fees remain episodic and fail to provide consistent structural support. It compared the current cycle to 2018 and 2022 but described this period as a “healthy shakeup.” It stated that the adjustment aligns with Bitcoin’s design and improves overall efficiency.

Crypto Miners Urged to Activate Balance Sheets for Yield

Wintermute argued that miners have yet to use the “full toolkit of treasury management” available to them. It said active balance sheet management remains the most underused lever in the sector. The firm stressed that miners should treat Bitcoin holdings as working capital.

It suggested that miners monetize market risk through derivative structures and covered calls. It also proposed cash-secured puts to generate structured income. Wintermute said these strategies could unlock yield without forcing large spot sales.

The firm noted that crypto yield generation has often centered on staking and decentralized finance platforms. However, it said miners could pursue passive income through lending protocols. These platforms allow firms to earn interest while maintaining asset exposure.

It added that this approach could help offset shrinking block rewards. The next halving will further reduce mining revenue tied directly to block subsidies.

Wintermute concluded that miners must adapt treasury strategies as market conditions evolve. It emphasized that holding Bitcoin alone may not sustain profitability under current revenue dynamics. The report was published on Thursday and reflects data from the present market cycle.

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