Podcast Summary: Markets Outlook by CoinDesk

Episode: How Miners Can Tackle Bitcoin's Halving Problem | Markets Outlook
Date: September 24, 2025
Host: CoinDesk team
Guest: Jamie Leverton, CEO of Reserve One (formerly CEO of Hut 8)

Episode Overview

This episode examines the challenges and opportunities facing Bitcoin miners as the network undergoes repeated halvings, reducing block rewards. The conversation dives deep into how the mining sector can adapt, the impact of evolving transaction fees, Bitcoin’s competition with other digital assets (particularly stablecoins), and the launch of Reserve One, a new public company focused on a diversified digital asset treasury. The episode offers insight into industry dynamics, regulation, DeFi on Bitcoin, and investment strategies for digital assets.

Key Discussion Points & Insights

1. The Halving Challenge for Bitcoin Miners

[00:16]

• The Problem: With each halving, Bitcoin block rewards decrease, pressuring miner profitability.

• Jamie Leverton’s Perspective:

  • Miners’ long-term health depends on robust transaction fees.
  • The "ordinals boom" provided a glimpse into the future where user activity drives up transaction fees.
  • Miners are likened to "Visa, MasterCard and the Mint and security all rolled into one."
  • It's critical for Bitcoin to support meaningful on-chain activity to ensure miners remain incentivized.

  "The miners will be dependent on transaction fees... The more building we can do on the bitcoin blockchain itself, the more we can support the network and drive transaction fees into the underlying ecosystem. That's going to be critically important for the long-term health of miners."
  — Jamie Leverton [00:53]

2. Bitcoin Versus Stablecoins: The Jealousy Factor

[01:52]

• Discussion: Bitcoin predates stablecoins but hasn't captured the same transaction volume or regulatory clarity.

• Leverton’s Take:

  • There's some "jealousy" in the Bitcoin community over the explosive growth and regulatory clarity enjoyed by stablecoins.
  • Despite being around longer, Bitcoin still battles outdated narratives (like use for illicit purposes) and regulatory uncertainty, especially in the US and Canada.
  • Stablecoins have "managed to just kind of avoid a lot of that [negative scrutiny] entirely."

  "I think there is a little bit of jealousy that stablecoins have kind of let frog Bitcoin. And we're still fighting a lot of battles in the Bitcoin world that we've been fighting for years."
  — Jamie Leverton [02:11]

3. The Role and Future of DeFi on Bitcoin

[03:23]

• Host’s Prompt: What happens if DeFi on Bitcoin doesn't succeed as hoped?

• Leverton’s Response:

  • She’s optimistic DeFi will play out on Bitcoin eventually; the question is timing and form.
  • Legal and regulatory clarity in the US is essential for unlocking innovation and investment on Bitcoin.

  "That market structure coming out of the federal government in the US is really, really critical. I think we're all watching that very carefully and hoping that we see something in the next few weeks..."
  — Jamie Leverton [03:39]

4. Introducing Reserve One: Structure & Strategy

[04:13]

• Path to Public Listing: Reserve One expects to list on NASDAQ by year-end, with an S4 filing announced.

• Business Model:

  • 80% Bitcoin, 20% “Alt Sleeve” (Ethereum, Solana, ADA, XRP out of the gate; dynamic allocation based on market cap and yield).
  • Inspired by recent US government initiatives and designed as a one-stop exposure product for institutional investors.

• Management:

  • Broad, seasoned team described as the “Avengers of crypto,” combining expertise from crypto, Wall Street, and regulatory backgrounds.

  "We are giving investors a one-stop shop for exposure to the crypto ecosystem where we do the work as a sophisticated management team and board of directors."
  — Jamie Leverton [05:39]

• Yield Generation & Venture:

  • Strategy includes active yield generation, with ability to allocate up to 10% to high-conviction venture investments.
  • Team includes Sebastian Baer (President of Coinbase Asset Management) as President/CIO.

5. Dynamic Asset Allocation – The 80/20 Approach

[07:13]

• Philosophy: Allocation is guided by relative free float market cap and yield capabilities; allocation will adjust dynamically as the market evolves.

• Potential Expansion: More assets may be added if/when regulatory clarity allows.

  "If that alt sleeve outperforms and the free float shifts, then the allocations will dynamically shift on that basis as well, which would be a good thing."
  — Jamie Leverton [07:47]

• Current 20% Holdings: Ethereum, Solana, ADA, XRP.

• Weightings: Ethereum and Solana likely to have higher weights owing to higher free float and yield generation.

Notable Quotes & Memorable Moments

• "Miners are responsible for the security of the bitcoin layer. They're responsible for processing the transactions. They bring new bitcoin into circulation. They're essentially Visa, MasterCard and the Mint and security all rolled into one."
  — Jamie Leverton [01:17]

• "I can't believe that argument [Bitcoin being used for illicit purposes] is one I still have to deal with on a daily basis, but it's true. And stablecoins have managed to just kind of avoid a lot of that entirely."
  — Jamie Leverton [02:11]

• "A bit of an Avengers strategy as we assemble... The Avengers of crypto."
  — Jamie Leverton [06:54]

• "We're here to support all of the above."
  — Jamie Leverton [08:02]

Timestamps for Key Segments

• 00:16 — Introduction to halving challenges for miners
• 00:53 — Importance of transaction fees and ordinals boom
• 02:11 — Bitcoin vs. stablecoins and regulatory challenges
• 03:23 — The critical role of DeFi on Bitcoin and need for regulation
• 04:13 — Reserve One overview and launch details
• 05:39 — Differentiation from other treasury strategies; yield and venture
• 07:13 — Philosophy and mechanics of the 80/20 allocation
• 08:31 — Current altcoin compositions and future asset additions

Summary Takeaways

• The future of Bitcoin mining depends increasingly on transaction fees as halvings diminish block rewards.
• There is some industry envy regarding stablecoins’ growth and regulatory clarity, which Bitcoin lacks.
• Legal clarity from regulators, especially the US Federal government, is a pivotal bottleneck for innovation in Bitcoin DeFi and the wider ecosystem.
• Reserve One aims to be a diversified, actively managed digital asset treasury offering institutional-grade exposure to leading crypto assets, with a team blending crypto, Wall Street, and regulatory expertise.
• Asset allocation is dynamic and will respond to market changes and regulatory signals, with a current focus on Bitcoin and major alts (ETH, SOL, ADA, XRP).

This summary covers the essential discussions from the episode and highlights the evolving strategies in both crypto mining and digital asset investment.