Latest news with #BitcoinMining
Yahoo
a day ago
- Business
- Yahoo
Are outdated tax laws crippling Bitcoin mining? Miners say it's time for change
Are outdated tax laws crippling Bitcoin mining? Miners say it's time for change originally appeared on TheStreet. In the evolving landscape of Bitcoin mining, one regulatory issue has quietly become a flashpoint for operators: the way mining income is taxed. Unlike traditional commodity producers, Bitcoin miners are taxed the moment they generate new coins—even before any sale takes place. 'If you're mining gold, you don't pay tax until you sell it,' said Beau Turner, CEO of Abundant Mines, in a recent conversation with TheStreet Roundtable's Alp Gasimov. 'But for Bitcoin miners, the IRS treats mined coins as regular income immediately, creating unnecessary sell pressure.' That distinction could soon be challenged. Turner points to the Financial Accounting Standards Board (FASB)'s recent decision to allow companies like Michael Saylor's Strategy to use fair value accounting for Bitcoin as a sign of shifting tides. He sees a similar path for the mining sector—if regulators are willing to view mined Bitcoin the same way they view mined commodities. Currently, Bitcoin miners face a two-part tax burden: first, regular income tax when coins are mined, and second, capital gains tax if the price increases before sale. This dual structure pressures many miners to sell prematurely—just to cover tax obligations—contributing to volatility and undermining long-term holding strategies. 'If you've got a tax bill but you haven't sold your coin yet, you might have to sell it just to pay the tax,' Turner explained. 'That wouldn't happen if we were treated like other commodity producers.' The implication is clear: align Bitcoin taxation with commodity norms, and miners could hold longer, reducing market supply and stabilizing price dynamics. When asked why this wasn't standard from the outset, Turner pointed to the slow-moving nature of regulatory bodies. Even small changes often require significant industry momentum and political backing. 'We're not asking for special treatment,' he emphasized. 'Just to be treated like any other commodity business.' That framing could gain traction, especially as mining gains visibility in political circles. Turner noted the involvement of 'the Trump brothers' in the mining sector as a possible catalyst for policy momentum, suggesting that bipartisan awareness is growing. Are outdated tax laws crippling Bitcoin mining? Miners say it's time for change first appeared on TheStreet on Jun 19, 2025 This story was originally reported by TheStreet on Jun 19, 2025, where it first appeared.
Yahoo
2 days ago
- Business
- Yahoo
BITF Lawsuit Alert! Class Action Lawsuit Against Bitfarms Ltd.
A class action lawsuit was filed against Bitfarms Ltd. (BITF) by Levi & Korsinsky on May 9, 2025. The plaintiffs (shareholders) alleged that they bought BITF stock at artificially inflated prices between March 21, 2023 and December 9, 2024 (Class Period) and are now seeking compensation for their financial losses. Investors who bought Bitfarms stock during that period can click here to learn about joining the lawsuit. Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter Bitfarms is a Canadian Bitcoin mining company that is transitioning its focus to building and managing data center infrastructure for high-performance computing (HPC) and artificial intelligence (AI) projects. The company claims to use renewable and alternative power sources for its operations to optimize costs and enhance sustainability. The company's failure to inform investors about its deficient internal controls over financial reporting is at the heart of the current complaint. According to the lawsuit, Bitfarms and three of its current and/or former senior officers (the Defendants) repeatedly made false and misleading public statements throughout the Class Period. Particularly, they are accused of omitting truthful information about the efficacy of the company's internal controls over financial reporting, and ancillary issues, from SEC filings and related material. During the Class Period, the company repeatedly stated that its management, including the CEO and CFO, have assessed the effectiveness of the Registrant's internal control over financial reporting and found them to be effective as of December 31, 2022. Additionally, in a May 15, 2023 press release, the former CEO noted that the company was maintaining financial and operating discipline and was able to achieve its target of reaching 6.0 exahash per second (EH/s) in Q3 FY23, ahead of the previously projected Q4 FY24. Finally, in an August 8, 2023 press release, the company mentioned that its management, led by the CEO and CFO, had established internal controls over financial reporting (ICFR). These controls were meant to help ensure that the company's financial reports are reliable, that its financial statements are prepared correctly for external purposes, and that they are in accordance with IFRS rules. However, subsequent events (mentioned below) reveal that the defendants failed to implement adequate internal controls over financial reporting, which ultimately led to the restatement of their historical financial statements. The plaintiffs maintain that the defendants deceived investors by lying and withholding critical information about the business practices and prospects during the Class Period. Importantly, the defendants are accused of misleading investors about deficient internal controls and procedures related to the categorization of proceeds derived from the sale of digital assets as cash flows from operating activities rather than from investing activities. The information became clear on December 9, 2024, when the company issued a press release announcing that it would need to restate previously issued financial statements due to the above-mentioned erroneous reporting. Particularly, Bitfarms will have to restate its consolidated financial statements for the fiscal years ending December 31, 2023 and 2022 and the related management's discussion and analysis (MD&A) for the year ended December 31, 2023. Additionally, the company will need to restate unaudited interim condensed consolidated financial statements for the three and nine months ended September 30, 2024 and 2023 and the related MD&A for the three and nine months ended September 30, 2024. These restatements were required to correct 'a material error in the classification of proceeds derived from the sale of digital assets.' Following the news, BITF stock fell 6.6% the same day and a further 6.1% on December 10. To conclude, the company misled investors regarding the potential impact on its financial results from the incorrect classification of proceeds from the sale of digital assets under cash flow from operating activities. Owing to these issues, BITF stock has declined 74.5% in the past year, causing massive damage to shareholder returns. Disclaimer & DisclosureReport an Issue
New York Times
4 days ago
- Business
- New York Times
The Trumps Promote a New Crypto Venture: Bitcoin Mining
On a Wall Street conference call in April, Eric Trump made a pitch for the newest venture in his family's rapidly expanding cryptocurrency empire. Mr. Trump, the president's second son, said he was joining forces with the crypto firm Hut 8 to start a company focused on Bitcoin mining, the business of running energy-guzzling machines to generate new coins. Bitcoin mining is a notoriously difficult industry. But in the pitch, Mr. Trump made clear that the policies of his father's administration would give the new company, American Bitcoin, a 'competitive advantage.' 'We're doing it in America with a government that's dedicated to low-cost energy,' he said, later adding, 'We've got the best energy policy in this country. That policy is only getting better.' Virtually every aspect of the Trump family's business portfolio is fraught with conflicts of interest that have blurred the boundary between government and industry. The debut of American Bitcoin, which is set to merge with a publicly traded company later this year, has heightened those concerns, introducing new ethical questions and pulling the Trumps even deeper into crypto, a business the White House has aggressively championed. President Trump is already financially intertwined with two other crypto ventures — a so-called meme coin created by a longtime business partner, and a separate company, World Liberty Financial, that he and his sons founded before the election. At the same time, he has ended a yearslong enforcement campaign against crypto companies by the Securities and Exchange Commission and vowed to sign legislation that would advance the industry's priorities. Want all of The Times? Subscribe.
Coin Geek
5 days ago
- Business
- Coin Geek
Store excess solar power production in Bitcoin: IEEE study
Getting your Trinity Audio player ready... Dynamic solar power systems that switch between selling excess electricity back to the grid and using it for digital asset mining may be an answer to energy problems, according to an IEEE case study. The study highlights the two critical problems for block reward miners: massive energy consumption and the resulting environmental pollution. 1/6A groundbreaking new study shows that Bitcoin mining is the most effective way to accelerate rollout of solar panels across the world's cities: More effective than using either subsidies or Batteries by an order of dive in 👇 Renewable energy sources, such as solar panels, are often touted as an answer to the electricity demands of digital currency. Yet, based on the current way that renewables are used and the technological and economic challenges that remain, it isn't possible for them to meet the demand for energy without further technological advancement and changes to the current energy system. One of the specific problems—one that is particularly prevalent in Finland, the location of the paper's case study—is that peak loads occur in winter, while renewables such as solar only hit peak generation during summer. This cascades into a broader problem: the perception that the fixed investment cost of getting a solar system up and running is not worth the ultimate savings of switching to renewables. A common solution to this problem has been to use batteries capable of storing excess electricity until needed. However, this is only so useful: batteries must be discharged past a certain point. 4/6 That's because batteries only give so much storage before they have to be dischargedThis study compared Battery to Bitcoin miningThe difference was stark Bitcoin is not just a little big better than batteries, it is 4.6x better than batteries: a facemelting 57.7% ROI — Daniel Batten (@DSBatten) June 10, 2025 The IEEE study essentially proposes storing the value associated with the excess electricity—not in a battery, but in Bitcoin. The study suggests a system that channels excess energy production in peak times—such as summer—into digital asset mining. This works on similar principles to a model already implemented in domestic renewable production, whereby homeowners with solar power can sell back excess production to the grid. Under the newly proposed system, homeowners could switch between putting their excess energy back into the grid and putting it into digital asset mining, depending on which is most competitive at the time. The benefits of this are myriad. Not only does it help populate the digital asset mining ecosystem with clean, renewable energy, but the savings and returns given to homeowners can help reduce the overall annual cost of housing. It also helps offset one of the drawbacks of the sellback model, which is the overall reduction of electricity price due to higher supply, thereby making it less viable for homeowners to sell. The envisioned model was applied to a 24-apartment building in Helsinki, Finland. The report contains a case study undertaken in Finland using a 24-apartment building in Helsinki with half of its roof space taken up by solar panels. It was found that the building's annual costs could be reduced by 68.1%. 'It has been shown that employing the proposed hedging mechanism will result in sufficient encouragement to invest in PV systems and decrease the annual cost of residential apartments,' reads the study. The study notes that though the case study bears out the assumptions, more work is still needed to test the model's viability. This could include investigating the potential of peer-to-peer energy trading among apartment tenants and investigating the role that government policy could play in encouraging adoption. Watch: Bryan Daugherty: Proof of ESG initiative through a sustainable blockchain
Coin Geek
5 days ago
- Business
- Coin Geek
Bitmain's Antminer S23 Hydro: Game-changer in Bitcoin mining
Getting your Trinity Audio player ready... In May 2025, Bitmain, the world's leading Bitcoin mining hardware manufacturer, unveiled its latest innovation, the Antminer S23 Hydro, at the World Digital Mining Summit (WDMS) 2025, setting a new benchmark for the industry. With an unprecedented energy efficiency of 9.5 joules per terahash (J/TH) and a hash rate of 580 terahashes per second (TH/s), this hydro-cooled rig, slated for release in Q1 2026, promises to redefine Bitcoin mining amid a challenging economic landscape. As BTC's price soared past $110,000 and global mining competition intensifies, the S23 Hydro addresses critical issues of profitability, energy efficiency, and environmental concerns, positioning Bitmain at the forefront of a rapidly evolving sector. The Antminer S23 Hydro's standout feature is its liquid-cooling technology, which delivers 580 TH/s at 5,510 watts, achieving an efficiency of 9.5 J/TH—a significant leap from the 27 J/TH average of current industry rigs. This efficiency is crucial following the 2024 Bitcoin halving, which slashed block rewards and reduced hashprices to $55 per petahash per second, down from $100 pre-halving. Miners, facing tighter margins and a 6.7% hash rate increase in April 2025, are under pressure to upgrade fleets rather than expand, making the S23 Hydro's efficiency a lifeline for profitability. Unlike air-cooled predecessors, the hydro-cooling system minimizes overheating, extends hardware lifespan, and reduces noise by 80%, making it ideal for large-scale operations in diverse climates. The timing of the S23 Hydro's launch is strategic. With ETF inflows outpacing mined coins (26,700 BTC bought vs. 7,200 mined in May), BTC's bullish run has fueled a global mining surge. Bitmain's launch also responds to market dynamics. The company offers flexible payment options, including BTC pledging and discounted pricing, to counter a slowdown in hardware demand. Recent deals with firms like CleanSpark (NASDAQ: CLSK) and Hut 8 (NASDAQ: HUT) reflect a buyer's market, with miners securing favorable terms for efficient rigs. Irene Gao, Bitmain's president of mining, emphasized at WDMS 2025 that the S23 Hydro targets operators focused on cutting energy costs, a critical factor as U.S. mining, which accounts for 40% of global hash rate, faces proposed 36% tariffs on Asian-made rigs. These tariffs could raise costs for U.S. miners, making the S23 Hydro's efficiency even more appealing. The S23 Hydro also caters to the resurgence of home mining, driven by falling U.S. energy prices and regulatory clarity from frameworks like the EU's MiCA. While platforms like BCC Mining's mobile app, launched in May 2025, democratize mining via cloud solutions, the S23 Hydro targets professional and industrial miners with its high output and low operational costs. Social media buzz on X highlights its appeal, with posts describing it as 'the Ferrari of mining rigs' for its power and efficiency. However, some skepticism persists, with users noting that high upfront costs and uncertain hashprice recovery could challenge returns. Regulatory and environmental pressures shape the S23 Hydro's context. The U.K.'s April 2025 push for compulsory digital currency regulation aims to curb fraud, while Pakistan's allocation of 2,000 megawatts for legal mining signals a global embrace of crypto economies. Yet, a 2025 Harvard study linked U.S. BTC mining sites to pollution affecting 1.9 million people, raising concerns about mining's environmental footprint. The S23 Hydro's hydro-cooling and renewable energy compatibility address these issues, though its $10,000-plus price tag may limit accessibility for smaller operators. The Antminer S23 Hydro's launch marks a pivotal moment for Bitcoin mining. Its unmatched efficiency and power position it as a solution to post-halving challenges, enabling miners to stay competitive in a high-hashrate, low-margin environment. As nations like Bhutan and Ecuador join the legal mining race and corporate players like MARA Holdings (NASDAQ: MARA) report record revenues, Bitmain's innovation sets a new standard. However, success hinges on navigating tariffs, energy costs, and regulatory shifts. For now, the S23 Hydro is a beacon of progress, promising to power the next chapter of Bitcoin mining with efficiency and sustainability at its core. Watch | Mining Disrupt 2025 Highlights: Profitable trends every miner should know title="YouTube video player" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" referrerpolicy="strict-origin-when-cross-origin" allowfullscreen=""> Antminer S23 Hydro Bitmain Block Reward Mining Irene Gao
