Exploring Bitcoin Miners’ Strategies for Yield and Diversification
Recent insights from Clear Street reveal that Bitcoin miners are actively seeking ways to generate income from their BTC holdings and exploring new avenues such as AI compute. The report, titled ‘BTC Mining: 2025’s Key Themes Emerge,’ highlights three key themes shaping the industry:
1. Bitcoin Yield and Spot ETF Upgrades
- Miners are exploring strategies to earn revenue from stored BTC through securities lending.
- A potential shift in SEC regulations could allow miners to exchange bitcoin directly for ETF shares.
- Companies like CleanSpark, Bit Digital, Bitfarms, and TeraWulf are adopting different approaches to maximize yield.
2. HPC Compute and AI Diversification
- Miners are repurposing data centers and equipment to cater to AI-driven workloads.
- Companies like Bit Digital and TeraWulf are venturing into the data center business to diversify earnings.
- HPC services offer lucrative revenue opportunities based on data center configuration and contract size.
3. Regulatory and Political Implications
- Potential regulatory changes could impact the industry, with a focus on SEC leadership and government policies.
- The industry outlook may be influenced by factors like federal spending cuts and energy policy modifications.
- Prominent figures like President Trump and proposed SEC chair Paul Atkins could shape the regulatory landscape for Bitcoin.
Clear Street’s Recommendations for Bitcoin Miners
Clear Street identifies top picks for Bitcoin miners based on valuations, expansion potential, and current HPC strategies:
- Bit Digital (BTBT) is recommended for its shift towards HPC revenue and potential data center partnerships.
- CleanSpark (CLSK) stands out for its energy-efficient mining practices and growth prospects.
- TeraWulf (WULF) aims to justify its valuation through new HPC agreements and improved mining metrics.
- Bitfarms (BITF) is positioned for a potential HPC expansion in the coming years.
The success of these recommendations hinges on the miners’ ability to scale operations, secure power agreements, and navigate regulatory requirements. Clarity from the SEC on in-kind BTC ETF share creation is crucial for unlocking yield on BTC holdings.
As new strategies mature and institutional capital flows increase, participating miners like Bitfarms, Bit Digital, CleanSpark, and TeraWulf are expected to benefit from these developments.
