VanEck’s Bold Bitcoin Play: Mining Royalty Scheme Aims to Fund US Strategic Reserve Without Taxpayer Pain

Wall Street meets crypto in VanEck’s latest proposal—turning Bitcoin miners into Uncle Sam’s new piggy bank. The asset manager pitches a ‘budget-neutral’ scheme where mining rewards partially fund a national Bitcoin reserve. Because nothing says ‘sound money’ like bureaucrats hodling.

Here’s the kicker: no fresh taxes, just redirecting a slice of mining rewards. Because when has repurposing existing revenue streams ever backfired? *cough* Social Security *cough*

The real question: Will Washington’s spreadsheet jockeys finally grasp Bitcoin’s strategic value—or will this end up like their ‘secure’ email servers?

Mining-royalty system

According to Sigel, mining royalties would satisfy the mandate because miners, not taxpayers, would supply the coins.

He framed the idea as a way to “clean up the environment and accumulate a Bitcoin stack at the same time,” arguing that miners who convert waste methane into electricity deserve tax relief while Washington receives a royalty.

Under this outline, energy producers that Flare or vent methane could install mobile data-center rigs, route the gas into generators, and earn block rewards free of income tax. Miners would forward an agreed-upon percentage, Sigel suggested single digits, directly to the Treasury’s reserve wallet.

According to Sigel, the model reduces greenhouse gas emissions and diversifies national reserves without federal outlays. He further argued that pilot programs could refine royalty rates and compliance rules.

Legislative road map

Sigel called for bipartisan co-sponsors to embed royalty language in energy, defense, and appropriations bills. 

He cited federal oil-and-gas royalties as precedent for attaching revenue riders to extraction activities.

He also urged state officials who regulate flaring to accelerate permits for miners that sign federal royalty contracts, mirroring existing tax holidays for data centers and renewable-power projects.

Sigel closed by saying swift legislative work could let the US “stack sats” within current fiscal limits and position the reserve for the next budget cycle.