Bitcoin Mining in the U.S.: How Outdated Tax Laws Are Stifling Growth

The American Bitcoin mining industry is grappling with significant challenges due to outdated tax regulations, which place it at a disadvantage compared to traditional commodity sectors. Unlike gold producers, Bitcoin miners face immediate taxation upon coin extraction and additional capital gains taxes upon sale, creating a double burden. This financial strain has led to premature liquidations, with top publicly traded mining companies selling over 40% of their holdings as of March 2025. The current tax framework not only undermines the competitiveness of U.S. Bitcoin miners but also threatens the long-term viability of the sector. As the industry continues to evolve, advocates are calling for regulatory reforms to level the playing field and foster sustainable growth in the cryptocurrency mining space.

Outdated Tax Laws Are Undermining Bitcoin Mining in the U.S.

The American Bitcoin mining industry faces mounting pressure as outdated tax rules create an uneven playing field compared to traditional commodity sectors. Bitcoin miners endure immediate taxation upon coin extraction, followed by capital gains taxes upon sale—a double burden gold producers avoid. This disparity forces mining firms into premature liquidations, with top publicly traded companies selling over 40% of their March 2025 production, the highest since October 2024.

Beau Turner, CEO of Abundant Mines, highlights the systemic disadvantage. "The IRS treats mined coins as regular income immediately," he notes, contrasting it with gold's single taxation at point of sale. Compounded by punitive tariffs—up to 54% on Chinese mining equipment—the regulatory environment threatens the sector's competitiveness. Market volatility intensifies as tax-driven sell-offs become routine operational responses.

Norway Implements Temporary Ban on New Crypto Mining Data Centers to Curb Energy Usage

Norway has announced a temporary ban on the establishment of new cryptocurrency mining data centers, effective August, as part of efforts to reduce excessive energy consumption. The decision, spearheaded by Minister for Digitalization and Public Administration Karianne Tung, reflects the government's intent to limit crypto mining activities deemed undesirable.

The Nordic nation, known for its cheap and abundant electricity, has emerged as a hub for bitcoin mining, contributing approximately 2% of the global hash rate. Northern regions, with lower energy and real estate costs, have been particularly attractive to miners. However, the government now seeks to prioritize sustainable energy use over power-intensive mining operations.

This MOVE follows April's proposed legislation requiring data centers to register and disclose ownership details. "We aim to close the door on projects we do not want," Tung stated, signaling a broader crackdown on the industry.

KindlyMD Raises $51.5M for Bitcoin Treasury Strategy Amid Corporate Crypto Adoption Trend

KindlyMD (NAKA), a Utah-based healthcare data firm merging with bitcoin-focused holding company Nakamoto, secured $51.5 million in a private placement equity round to expand its BTC holdings. The financing was fully subscribed within 72 hours at $5 per share, bringing total capital raised to $763 million.

"Our strategy remains unequivocal: raise capital to accumulate bitcoin," stated Nakamoto CEO David Bailey. The announcement follows a 7% dip in NAKA shares during early trading, contrasting with a flat Nasdaq Composite performance.

This move mirrors MicroStrategy's pioneering crypto treasury play, where public companies leverage equity and debt markets to build digital asset reserves. MicroStrategy currently holds 592,000 BTC ($62 billion), setting a benchmark for corporate bitcoin adoption.

South Korean Biotech Firm Secures $183.3M Funding to Establish Bitcoin Treasury

Bridge Biotherapeutics (288330), a South Korean biotech firm, is positioning itself as the country's counterpart to U.S.-based MicroStrategy or Japan's Metaplanet by adopting a Bitcoin treasury strategy. The Seongnam-based company has secured 25 billion won ($183.3 million) from crypto investment firm Parataxis to build its BTC holdings.

Inspired by the growing institutional interest in Bitcoin treasury strategies, Bridge will rebrand as Parataxis Korea while maintaining its listing on the KOSDAQ exchange. "The trend is clear—companies like MicroStrategy and Metaplanet have demonstrated the value of BTC as a corporate reserve asset," said Andrew Kim, partner at Parataxis.

The move follows a global pattern of non-crypto companies allocating treasury reserves to Bitcoin. MicroStrategy holds over 2.8% of the total Bitcoin supply, while Metaplanet's 10,000 BTC ($1.04 billion) makes it the largest public company holder outside North America. Both have seen significant share price appreciation as investors treat them as Bitcoin proxies.

Bridge joins healthcare-adjacent firms Semler Scientific and Prenetics Global in adopting this strategy. Meanwhile, Parataxis is preparing for a U.S. public listing via SPAC merger.

Norway Proposes Crypto Mining Ban Despite Local Bitcoin Investments

Norway's government is moving to temporarily halt new data center projects tied to cryptocurrency mining, citing environmental concerns and energy waste. The proposed restrictions, expected by year-end, aim to redirect electricity toward more productive economic activities. Digitalization Minister Karianne Tung criticized mining operations as offering minimal job creation or tax revenue despite their massive power consumption.

This stance contrasts sharply with nations like El Salvador and Pakistan, where state-backed Bitcoin mining programs harness surplus energy to stabilize grids and generate revenue. The policy shift comes as Norwegian industrial firm Aker ASA reveals holdings of 754 BTC (worth $80+ million), becoming the country's largest corporate Bitcoin holder.

Bitcoin's Unicode Symbol Marks 8th Anniversary Since Official Recognition

The Bitcoin symbol (₿) celebrates its eighth year as an officially recognized Unicode character this week. Unicode 10.0.0, released on June 20, 2017, introduced 8,518 new characters—including Bitcoin's distinctive 'B' with vertical strokes—alongside emoji and religious typography.

Unlike the dollar sign's murky origins tracing back to Spanish colonial pesos, Bitcoin's symbol has a documented provenance. The Unicode proposal describes it as a capital B intersected by partial vertical lines, a design championed by hardware hacker Ken Shirriff. This milestone formalized the cryptocurrency's visual identity across global digital platforms.