Features writer

Jeffrey Gogo

Features writer

Jeffrey Gogo

About Author

Jeffrey Gogo is a journalist with 20 years of experience in business, finance, cryptocurrency, and climate change news and analysis.

Share

Fact Checked by

Elena Bozhkova

Features Lead

Elena Bozhkova

About Author

Elena is the Features Lead at Cryptonews.com. With a Master’s degree in science journalism from City University, London, she is passionate about exploring complex topics in the world of technology.

Last updated: 

June 23, 2025

Key Takeaways:

• Donald Trump has criticized Biden-era green energy incentives as a “giant scam”.
• He plans to eliminate the subsidies, with tax credit cuts of 30% on solar energy by 2028.
• Analysts say the move will increase energy costs for Bitcoin miners, though the loss could be offset by the reintroduction of 100% bonus depreciation.

Donald Trump’s tax bill, narrowly passed by the U.S. House of Representatives in late May, could result in a major increase in energy costs for Bitcoin miners who rely on solar power and other renewables, according to industry analysts.

The bill, dubbed by the Republican President “big, beautiful bill,” would phase out Biden-era renewable energy incentives, with tax credit cuts of 30% on solar energy by 2028. The legislation is currently being reviewed by the Senate before it can be passed into law.

“Trump’s bill could result in a 10–15% increase in electricity costs, particularly in areas where miners rely primarily on solar energy,” Michael Jerlis, CEO of Bitcoin mining pool EMCD, told Cryptonews.

Nearly 43% of the Bitcoin network is now powered by renewable energy sources, with solar energy accounting for just 3.2% of the total, according to the latest data from the Cambridge Centre for Alternative Finance.

Hydropower accounts for the biggest share with 23.4%, followed by wind energy at 15.4%, and other renewables at 0.5%. It’s unclear what proportion of the 137 Bitcoin miners across 21 U.S. states rely on solar power.

“The industry may be significantly impacted by any changes to the regulations that affect these [energy] sources,” Jerlis said, adding:

“The bill’s impact on the mining sector will be largely determined by local laws, energy mix configurations, and the specific tax burden miners face in each region.”

Solar projects, often built in remote areas, rely on Bitcoin miners as “anchor tenants” to justify development. Experts say without subsidies, new solar farms could stall, causing a squeeze on miners’ access to low-cost power.

Can Bitcoin Thrive Without Subsidies?

But that may not always be the case. According to Mason Jappa, CEO of U.S.-based Bitcoin miner Blockware, the assumption that miners depend on solar is misguided.

“Miners don’t necessarily rely on solar,” he said, in response to questions from Cryptonews. “In fact, it’s really the other way around. Solar energy producers are very reliant on Bitcoin miners.”

That’s because large-scale solar farms are often located in remote areas where retail energy demand is low and transmission to cities, to larger consumers, is costly.

But BTC miners “are able to provide solar power producers with a ‘backstop’ of demand” because they can operate anywhere there’s a cheap power source, said Jappa.

In this light, he says, Trump’s clean energy tax credit cuts do not spell disaster for miners who depend on electricity generated from the sun. On the contrary, the economic incentive for collaboration could actually increase. Jappa explains:

“Investors looking to build new solar farms have less uncertainty because they know that Bitcoin miners are almost always willing and able to purchase their energy. Ultimately this will lead to increased solar energy production even in the absence of government subsidies.”

Environmental analyst Daniel Batten concurred with Jappa, saying Bitcoin doesn’t need subsidies to make renewables like solar economically viable.

“Bitcoin mining is politically agnostic,” Batten said. “It can operate in an environment with or without subsidies just as well.”

Speaking to Cryptonews, Batten cited academic research by Hakimi et al, which shows that utility-scale solar projects achieve faster ROI, or return on investment, in less than half the time when using Bitcoin mining.

Rooftop solar installations, too, achieve 57% better ROI, outperforming batteries by a factor of four when combined with mining. Batten sees any tax cuts from Trump’s bill as encouraging more market-driven innovation.

“So if solar operators (as some already have), start looking at a coordinated solar/Bitcoin mining rollout solution, that’s a more economically sustainable alternative than depending on subsidies, which may or may not exist depending on factors outside of your direct control.”

Bonus Depreciation: A Lifeline for Bitcoin Miners

On the campaign trail, Donald Trump promised to eliminate the clean energy tax credits passed by former President Joe Biden under the Inflation Reduction Act of 2022. The tax credits were a key pillar of the Biden administration.

Trump argued that energy subsidies are expensive and harmful to business. In a post on his Truth Social network over the weekend, Trump continued his attacks on green tax credits, calling them a “giant scam”.

“I would prefer that this money be used somewhere else, including reductions,” he said. “Windmills and the rest of this junk are the most expensive and inefficient energy in the world, is destroying the beauty of the environment (sic).”

However, Trump’s “big, beautiful bill” revives an old provision that could help Bitcoin miners “wipe out” their tax bills — 100% bonus depreciation.

As Cryptonews previously reported, the clause allows companies to promptly deduct the full cost of capital expenditures like new mining equipment from taxable income. Under the bill, Bitcoin miners can write off 100% of hardware costs in the year of purchase. It can apply when a firm buys new mining equipment, such as application-specific integrated circuit (ASIC) miners.

For example, a miner spends $30,000 to buy three ASIC miners for $10,000 each. Under 100% bonus depreciation, the miner’s $30,000 mining hardware purchase becomes a $30,000 tax deduction upfront.

If a miner earns as little as $5,000 in revenue that year, they can report a $25,000 paper loss. Mining firms or individuals can use the faux loss “to offset income from your job, business, or investments.”

“Depending on your tax bracket, that could save you $7,000 to $10,000 in taxes,” tax expert Arniel Sia posted on X in late May.

Existing Internal Revenue Service (IRS) rules require firms to depreciate large equipment buys over many years. Tax deductions are spread out across an asset’s useful life, typically five years for ASIC miners.

Blockware’s Jappa believes the 100% bonus depreciation is a game-changer.

“This will allow miners to write off the full cost of their mining hardware (ASICs) in a single tax year – leading to major tax savings and higher net returns for Bitcoin miners,” he told Cryptonews.

Jerlis, the EMCD Bitcoin mining pool CEO, said hardware makes up the majority of mining capital expenditures, estimated at somewhere between 60%-70%. The tax break from bonus depreciation could offset solar-related price hikes, especially for miners using mixed energy sources, he said.

Energy Independence

Apart from solar, Trump’s push for “domestic energy independence,” with plans to scale back environmental regulations while promoting things like natural gas and nuclear expansion, could lower costs across the industry.

As the Blockware CEO Jappa notes, Bitcoin miners are “adaptable and non-discriminatory,” prioritizing the cheapest source, whether subsidized solar or deregulated gas. They could benefit from Trump’s pivot, he says.

“Policies that encourage natural gas production, reduce regulatory barriers for new energy projects, etc., would all result in lower energy prices for Americans and higher profitability for Bitcoin mining.”

According to the latest Cambridge Centre for Alternative Finance study, more miners are switching to cheaper, off-grid power. It says the 52.4% sustainable power used in BTC mining includes 9.8% nuclear and 42.6% renewables like hydro, solar, and wind.

For the first time, natural gas has replaced coal as the single largest energy source in Bitcoin mining — a process that involves solving complex mathematical puzzles to verify transactions and add them to the blockchain.

The report, published in April, says natural gas, a cleaner burning fuel, now accounts for 38.2% of the electricity used to mine BTC, up from 25% three years ago. Coal usage has dropped to 8.9% from 36.6% during the same period.

Meanwhile, Bitcoin-related emissions have remained steady over the last three years, stabilizing at 39.8MtCO2e (megatons of carbon dioxide equivalent), thanks to improved machine efficiency and a switch to renewable power.

Cryptocurrency investment has enormously evolved during the past few years, providing better solutions for earning passive income. Crypto staking and crypto mining are the two most common passive income sources. Although mining has been around since the inception of Bitcoin, the arrival of staking crypto introduced a new, more efficient, and sustainable way of earning rewards. As there is increasing discomfort about energy consumption and equipment costs, staking crypto is proving to be the better alternative for investors seeking good returns. 

Crypto Mining (Cloud Mining) vs. Crypto Staking

Cryptocurrency investors often have a conflict between selecting cloud mining and staking as ways to earn passive income. While both involve earning rewards, There are different principles and with distinct advantages and risks in both cloud mining and staking. Here is a detailed chart below comparing Cloud Mining vs. Crypto Staking to help investors make an informed decision.

Key Differences: Cloud Mining vs. Crypto Staking

HTXMining: A Reliable Platform for Crypto Earnings

It is important to choose the right platform for those who are interested in maximizing their crypto earnings. HTXMining is one of the Best Crypto Staking Platforms for staking and mining cryptocurrencies. Crypto staking involves putting your crypto assets to work directly within a blockchain network and cloud mining is based on utilizing the computer energy from far-off data centers to mine cryptocurrencies. 

HTXMining Liquidity Mining: Maximizing Returns with Stability

HTXMining Liquidity Staking: Unlocking the Future of Crypto Staking

HTXMining offers a cutting-edge liquidity staking solution, allowing users to earn passive income while maintaining flexibility over their staked assets. HTXMining is a top-tier platform for crypto enthusiasts looking to maximize their staking rewards, with a maximum dynamic return (DR) of up to 5.5% and a total value locked (TVL) exceeding $84 billion.

HTXMining Bonus and Affiliate Program

HTXMining offers attractive bonuses and rewards such as affiliate programs to their users. This program will help the users with boosting their assets while participating in Crypto staking. No matter if you’re putting your assets on the line or bringing in friends, HTXMining offers various methods to boost your rewards and make some easy money.

HTXMining Affiliate Program: Earn by Referring Friends

HTXMining’s Affiliate Program provides a better way to maximize its assets by bringing new users to the platform.

How It Works:

1. Join the Program – Connect your wallet and get a unique referral link.

2. Invite Friends – Upon signing up, you will receive a unique referral link and share the link with friends or else with your social media networks.

3. Earn Commissions – Get a percentage of your referrals’ staking rewards and investments.

4. Level Up for More Rewards – You can grow your assets by referring more users to the platform.

HTXMining Welcome Bonus: Kickstart Your Staking Journey with Extra Rewards

Considering the new users welcomed by HTXMining with welcome bonuses, make sure to take the sign-up bonuses on this platform, including extra staking rewards or a bonus deposit when you start the staking. This bonus will be a kickstart for beginners to start their crypto-staking journey.

HTXMining Million Bounty Program: Earn Big Rewards for Your Engagement

The Million Bounty Program of Htxmining is focused on maximizing the funds of investors by participating in promotional activities. This program will help you to generate extra income while contributing to the HTXMining ecosystem.

How to Participate in the HTXMining Million Bounty Program?

1. Register

Connect the wallet and complete the mentioned tasks to earn rewards.

Ready to earn by completing the tasks.

2. Complete Promotional Tasks

Participants can earn rewards by completing the tasks, such as managing the groups, and posts, and sharing among the others using social media networks such as Twitter, Facebook, and Reddit. Other than that, the users can write articles or create videos to engage with more people.

3. Earn Rewards Based on Your Contribution

You can earn higher bounty rewards by engaging with more people.

Key Features of HTXMining

HTXMining has become a leading platform among crypto investors, offering various benefits that cater to both newcomers and experienced traders. Here are some special features available on the Htxmining platform:

1. Multiple Crypto Staking Options- Users can deal with several cryptocurrencies when dealing with HTXMining. Here are the popular cryptocurrencies used in Htxmining Ethereum (ETH), Solana (SOL), and Polkadot (DOT). The crypto staking rewards you earned through Htxmining are based on network usage and the crypto amount staked.

2. Highly Secure – Security is a top concern in crypto staking, and HTXMining consists of advanced security measures to protect your funds.

3. Expert Team – HTXMining has an expert team of blockchain experts and cryptocurrency staking pros to support you with crypto staking and mining since 2022 to the press.

4. 7×24H Customer Service – HTXMining has a dedicated customer support team to support you with any issue related to the Htxming platform. Ensuring 24/7 assistance whenever you need it, and their support ensures that users receive immediate help.

5. User-Friendly Platform- HTXMining has a user-friendly interface where anyone can easily track their staking rewards and mining earnings.

Conclusion

For investors seeking a stable and profitable way to earn crypto rewards, staking crypto is the better choice. It provides predictable returns, lower risks, and an environmentally friendly approach compared to cloud mining. Platforms such as HTXMining provide a safe and effective means of engaging in staking and mining, offering users flexibility according to their desires.

If you’re interested in maximizing your earnings with crypto-staking rewards, consider exploring HTXMining’s staking options and take advantage of one of the best crypto-staking platforms available today.