Bitcoin News Update: Bitcoin Miners Expand into AI and Leverage Tax Regulations to Withstand Market Volatility

Bitcoin Miners Seek Tax Relief and Broader Strategies Amid Market Swings

Bitcoin mining companies are turning to tax depreciation incentives and diversified business approaches to ease financial strain as they navigate unstable crypto markets and increased regulatory oversight. The CEO of Abundant Mines pointed out that writing off mining hardware can provide significant tax relief, a tactic also used by companies such as

and , which even as Bitcoin's value recently dropped.

Canaan, which is listed on Nasdaq, experienced a nearly 16% jump in its stock price after its Q3 2025 earnings showed a 104% year-over-year revenue rise to $150.5 million, fueled by increased mining equipment sales and operational growth.

reversing a $21.5 million loss from Q3 2024. Likewise, Digital Technologies achieved record Q2 revenue of $87.3 million, up 285% from the previous year, thanks to mining and growth in high-performance computing (HPC). Hive’s shares climbed 7.5% even as Bitcoin traded below $92,000, its lowest in seven months .

Still, the industry faces significant obstacles.

, which combines mining with AI infrastructure, in Q3 2025, sparking doubts about its sustainability. At the same time, U.S. authorities are closely examining Chinese mining hardware providers. Bitmain, the leading manufacturer of Bitcoin ASICs, is being investigated for possible national security threats, with officials probing whether its devices could be remotely accessed for spying or disrupting power grids . Bitmain has rejected these claims as "completely untrue," but the investigation has increased tensions, especially with crypto projects from the Trump era linked to its products .

To address market instability, miners are shifting focus to AI and HPC services. Hive’s Buzz division secured a $140 million annual revenue stream by installing 504 Dell GPUs at its Bell AI Fabric data center

. Cipher Mining, another key player, issued $333 million in senior secured notes to grow its Texas operations, which includes a decade-long AI hosting deal with Fluidstack . These initiatives reflect a wider industry movement, with companies like Riot and Marathon Digital also expanding into HPC to counteract falling Bitcoin margins .

Tax planning remains a top priority. The IRS classifies mining earnings as regular income, but deductions for equipment depreciation and operational costs can lower taxable profits. For example,

to $11.8 million, which played a major role in its higher EBITDA. Meanwhile, crypto advocacy organizations are , such as postponing taxes on staking and mining rewards until the assets are sold.

Nonetheless, hurdles remain.

from its October high has cut into miners’ earnings, and Bitmain’s dominance—accounting for over 80% of ASIC output—exposes the sector to geopolitical risks. Still, companies like and Hive are relying on scaling up and diversifying to survive the downturn. As the CEO of Abundant Mines noted, leveraging depreciation and strategic shifts could be crucial for an industry on the brink of change.