Bitcoin News Today: Bitcoin Miners' Revenue Wanes, Yet HPC Pivots Propel Stocks Higher

Bitcoin Miners Face New Pressure as Revenue Slips, Yet Miner Stocks Climb

Bitcoin miners are navigating a dual challenge as transaction fee revenue hits a 12-month low and operational costs rise, yet strategic pivots and market dynamics have propped up miner stocks. Daily earnings from fees have fallen to roughly $300,000, representing less than 1% of total miner income, due to reduced network congestion and lower transaction volumes. This decline has forced miners to rely more heavily on block rewards, creating vulnerabilities if Bitcoin prices dip further. Smaller operations are particularly at risk, with analysts warning of potential shutdowns if margins continue to shrink.

The cost burden is compounding these pressures. TeraWulf Inc. (WULF), for instance, reported a 37% year-over-year revenue increase in Q3 2025 to $35.4 million, but its costs surged 46% to $21.8 million, driven by higher energy prices and depreciation from expanded mining fleets. Gross margins compressed to 38%, down from 42% in the prior year. Similarly, Riot Platforms (RIOT) and Cipher Mining (CIFR) showed mixed results, with Cipher maintaining a stronger 41% gross margin despite rising costs according to Nasdaq analysis.

Despite these headwinds, miner stocks have seen renewed investor interest. JPMorgan analysts upgraded Cipher and CleanSpark (CLSK) to Overweight, citing long-term high-performance computing (HPC) contracts that could transition miners into data center operators. Cipher's stock jumped 5% premarket after the bank raised its price target to $18 from $12, noting its 410-megawatt HPC deals and a 45% share-price pullback. CleanSpark, which secured 200 MW of critical IT capacity at its Texas site, also drew a price target increase to $14 according to CoinGlass. The firm's optimism contrasts with downgrades for larger miners like Marathon Digital and Riot Platforms, which face challenges from Bitcoin price volatility and dilutive share issuance.

While the market's shift toward HPC and cloud-compute deals is reshaping valuations, the sector is also seeing increased interest in . JPMorgan now estimates 1.7 gigawatts of additional critical-IT capacity could be announced by late 2026, with HPC sites potentially supporting higher valuations. This trend aligns with companies like IREN Limited, which secured a $9.7 billion Microsoft cloud deal, though its stock remains underweight due to inflated expectations according to CoinGlass.

Meanwhile, Bitcoin's price slump has amplified risks for firms with heavy exposure to crypto assets. MicroStrategy (MSTR), which holds $56 billion in Bitcoin, faces potential index exclusion by MSCI—a move that could trigger $11.6 billion in outflows, per JPMorgan. MSTR's share price has fallen over 40% in a month, compounding concerns about liquidity and equity-raising capabilities.

Meanwhile, the sector's bifurcation underscores a broader transition: miners with diversified HPC strategies are outperforming peers reliant on Bitcoin's price swings. As JPMorgan analysts note, "The ability to convert power assets into long-duration HPC revenue is a defining advantage over traditional mining models". This pivot could stabilize miner income streams amid crypto market turbulence.

For now, the path forward remains uncertain. While fee revenue is unlikely to rebound without increased network usage, strategic shifts and institutional demand for HPC capacity may cushion the blow. Investors, however, are advised to monitor Bitcoin's price trajectory and macroeconomic factors, which remain pivotal to the sector's long-term viability.