The Bitcoin Mining Paradox: Trump's Pro-Crypto Policies Miss the Producers

The U.S. crypto landscape in 2025 is a tale of two worlds. On one side, the Trump administration has aggressively positioned the nation as a global leader in digital finance, with policies like the Strategic Bitcoin Reserve and the GENIUS Act fueling institutional adoption. On the other, U.S. Bitcoin miners-once hailed as the backbone of the industry-are struggling to survive, with many pivoting to artificial intelligence (AI) and high-performance computing (HPC) to stay afloat. This paradox raises a critical question: Why is the administration's pro-crypto agenda thriving in boardrooms but failing at the mining rigs?

The Trump Administration's Pro-Crypto Playbook

The Trump administration's 2025 policies have been laser-focused on institutional adoption and national strategic interests. The Strategic Bitcoin Reserve, modeled after traditional reserves of gold or oil, aims to redefine U.S. wealth management by incorporating Bitcoin and other digital assets into federal holdings, as FinanceFeeds reports. This initiative, coupled with the GENIUS Act-a regulatory framework for stablecoins-has created a fertile ground for institutional players. The upcoming CLARITY Act is expected to further clarify the SEC and CFTC's roles, reducing regulatory ambiguity and enabling tokenized stocks and bonds, according to CoinDesk.

Institutional adoption has surged, driven by privacy tokens like Zcash and the rise of exchange-traded funds (ETFs). Over 140 companies now hold $137 billion in crypto assets, with the market value of publicly traded crypto firms jumping from $80 billion in early 2024 to $380 billion by late 2025, according to CoinDesk. These developments underscore a broader shift: crypto is no longer a speculative asset but a cornerstone of modern capital markets.

The Mining Industry's Struggle for Survival

While the administration celebrates institutional milestones, U.S. Bitcoin miners are grappling with existential challenges. Firms like TeraWulf and CleanSpark have slashed Bitcoin mining output, reallocating energy resources to AI and HPC projects, according to Crypto News and The Coin Rise. TeraWulf, for instance, reduced its mining activity in Q3 2025, citing rising energy costs and declining profitability, as reported by Crypto News. CleanSpark, despite raising $1.15 billion to expand both mining and AI infrastructure, reflects an industry-wide pivot, as The Coin Rise reports.

The financial toll is stark. Bitdeer Technology Group, a major miner, reported a $266.7 million net loss in Q3 2025, driven by post-halving block rewards and operational costs, according to Yahoo Finance. Yet, there is no mention of federal grants, subsidies, or tax incentives to support these firms. The Trump administration's pro-crypto agenda, while ambitious, appears to prioritize institutional adoption over the very producers that sustain the Bitcoin network.

The Paradox: Institutional Adoption vs. Miner Neglect

The disconnect is stark. The Strategic Bitcoin Reserve, for example, is built on the premise of national wealth management but does not explicitly include U.S. miners in its framework, as Seeking Alpha notes. Meanwhile, the GENIUS Act focuses on stablecoins and corporate adoption, leaving miners to navigate a regulatory gray zone, as Bitget reports. This imbalance is not lost on industry observers.

Consider American Bitcoin (ABTC), a company backed by Eric Trump. While it has expanded its holdings to 4,004 Bitcoin through mining and purchases, as Seeking Alpha reports, this effort is a private venture, not a federal initiative. The absence of a national strategy to support miners-whether through energy subsidies or infrastructure investment-highlights a critical gap in the administration's approach.

Implications and the Road Ahead

The Bitcoin mining paradox underscores a broader challenge: how to balance innovation with infrastructure. While institutional adoption is crucial for crypto's legitimacy, the industry's long-term health depends on resilient mining operations. Without federal support, U.S. miners risk ceding ground to foreign competitors, undermining the administration's goal of global leadership.

The upcoming Consensus x SALT Hong Kong Institutional Summit in February 2026 will likely spotlight institutional gains, according to Morningstar, but the mining sector's struggles may go unaddressed. For the U.S. to truly dominate the Bitcoin era, policymakers must bridge this gap-before the rigs fall silent.