Many Bitcoin miners are struggling to remain profitable in the current market cycle as returns continue to shrink. According to crypto market maker Wintermute, miners may need to explore new strategies — such as hosting artificial intelligence infrastructure or generating yields from their Bitcoin holdings — to stay financially viable.
In a blog post published Thursday, Wintermute noted that miners have spent years developing large-scale energy and computing infrastructure in regions with low-cost electricity. As a result, many now control the exact type of high-power data infrastructure that the rapidly expanding AI industry urgently requires but cannot easily replicate.
However, the firm pointed out that Bitcoin mining remains a “structurally rigid business model.” While shifting toward AI-related services could be attractive, it would require significant capital investment and operational changes.
The analysis comes as MARA Holdings recently signaled interest in the AI sector. In a filing with the U.S. Securities and Exchange Commission on March 3, the company indicated it may sell part of its Bitcoin reserves to fund a potential pivot toward AI initiatives. Since October, publicly listed mining companies have collectively sold more than 15,000 BTC.
Bitcoin reserves reflect the “HODL era”
Wintermute also noted that miners collectively hold nearly 1% of the total Bitcoin supply, describing this as a legacy of the long-standing “HODL” culture within the crypto industry.
According to the firm, many miners have yet to fully utilize modern treasury management strategies for their BTC holdings.
While crypto yield generation has traditionally relied on staking and decentralized finance, Wintermute suggested miners could unlock additional returns through more active strategies — including derivatives-based approaches such as covered calls and cash-secured puts, which allow holders to monetize market volatility.
More passive options could include deploying Bitcoin into crypto lending protocols to generate interest income.
“We believe active balance sheet management is the most underused tool available to miners and one that deserves far greater strategic focus,” said Wintermute. The firm added that miners who treat their Bitcoin holdings as a productive asset rather than a passive reserve will gain a structural advantage heading into the next Bitcoin halving cycle.
Wintermute noted that, for the first time in a typical four-year market cycle, Bitcoin has not achieved the twofold price increase historically needed to offset the revenue reductions caused by the halving. As a result, mining companies have seen gross margins peak at levels that previously signaled the start of bear market conditions.
The report also pointed out that transaction fees have failed to consistently compensate for the lost block rewards, as the fee market tends to be sporadic rather than a reliable source of revenue. Meanwhile, rising energy costs continue to pressure mining profitability.
According to Wintermute, current industry data suggests the pressure on miners differs from previous downturns seen in 2018 and 2022. Instead, the firm described the situation as a “healthy shakeup” that aligns with Bitcoin’s design and could ultimately make the mining sector more efficient and resilient.
