According to a recent Clear Street report, Bitcoin miners are pursuing yield strategies for their BTC holdings and diversifying into AI compute.
The report, titled ‘BTC Mining: 2025’s Key Themes Emerge,‘ outlines three themes for 2025: generating revenue on bitcoin reserves, leveraging existing infrastructure for HPC initiatives, and benefiting from a shift in US regulatory leadership.
Bitcoin yield and spot ETF upgrades
Clear Street’s authors indicate that several miner management teams are investigating ways to create income from stored BTC, with securities lending described as a potentially viable approach pending regulatory adjustments. The report states that a new SEC stance could permit in-kind creation of BTC exchange-traded fund shares, allowing miners to exchange bitcoin directly for ETF units and subsequently partner with prime brokers on share lending income. Low-to-mid single-digit yields are noted for general collateral securities, while higher rates may apply if ETF shares become harder to borrow.
Clear Street adds that legal changes would place BTC securities lending on par with broader lending practices, prompting sector participants to focus on operational details. Per the analysis, CleanSpark holds a notable HODL balance and could earn millions of dollars in annual interest once strategies scale. Bit Digital, Bitfarms, and TeraWulf are cited with varied holdings or approaches, including staking programs or not retaining Bitcoin at all, depending on corporate policy. Clear Street projects that such yield mechanisms could unlock additional revenue streams and help miners optimize large-scale operations that might otherwise be idle.
HPC compute and AI diversification
The report also highlights a growing pivot toward HPC compute, with miners repurposing data centers, power sources, and advanced equipment to serve AI-driven workloads. The authors see a path for companies to diversify earnings beyond mining. Bit Digital is said to be transitioning into a data center enterprise via acquisitions in Montreal, aiming to host HPC clients for stable fees and potential upside. TeraWulf is noted for a new HPC agreement that could expand to over 100 MW of capacity, targeting demand for complex AI research needs. Clear Street’s figures show that HPC services can generate appealing per-megawatt revenues, with margin ranges depending on data center configuration and contract size.
According to the report, political shifts may also bolster the industry’s outlook. President Trump’s administration is portrayed as friendlier to Bitcoin interests due to potential changes at the SEC and Department of Energy and more open views on BTC products. Trump’s nominee for SEC chair, Paul Atkins, has past involvement in digital asset initiatives, and the proposed Treasury Secretary, Scott Bessent, is seen as more receptive to crypto than previous leadership.
However, the research warns that cuts in federal spending or energy policy changes could introduce uncertainties, particularly if renewable energy credits are modified. Clear Street also notes the possibility that diminished government outlays might reduce inflationary pressures some investors see as beneficial for Bitcoin.
The analysis highlights several companies as top picks based on valuations, expansion potential, and current HPC roadmaps.
Clear Street recommendations for Bitcoin miners
Bit Digital (BTBT) is labeled a Buy due to its shift from an asset-light mining model toward HPC revenue, with management citing a pipeline of potential data center tenants. CleanSpark (CLSK) is presented as a favorite pure-play miner, supported by best-in-class energy strategies and a pipeline for growth through 2027. TeraWulf (WULF) has a larger multiple relative to others but aims to justify it with new HPC deals and improved mining metrics. Bitfarms (BITF), regarded as a BTC mining specialist, reportedly has stable energy contracts and is poised for a potential HPC foray in late 2025 or early 2026.
Per Clear Street, these projections rest on each firm’s capacity to scale data center operations, secure or renew power agreements, and navigate final regulatory steps for securities lending. The authors emphasize that clarity from the SEC on in-kind BTC ETF share creation will be pivotal for unlocking yield on HODL balances.
Their projections point to stronger revenue for participating miners as new practices mature and capital inflows expand from institutional partners seeking additional exposure to digital assets. Bitfarms, Bit Digital, CleanSpark, and TeraWulf remain in focus based on Clear Street’s current forecasts.
