CleanSpark’s new “self-funding” model is a brilliant move. Or does it expose a desperation in a mining sector increasingly shaped by volatility and geopolitical headwinds? As with pretty much anything Bitcoin-related, the answer is a bit more complicated. As a result, miners are rushing to pivot, allowing it to serve as a rich and compelling case study. This unprecedented danger also causes heartbreaking questions about the long-term health of the ecosystem.

Innovation or Survival Tactic?

CleanSpark has been actively selling the Bitcoin its mining to pay operating expenses and fund growth. This action responds head-on to the terrible 2025 mining stock crash. We don’t have the CoinShares Crypto Miners ETF (WGMI) experience getting crushed and the halving is still squeezing out profitability. It’s a bit like observing the world’s most dysfunctional game of musical chairs where the music stopped several months ago.

On the surface, it's smart. Increased avoidance of equity dilution (issuing new shares) and debt is very positive. The Coinbase Prime $200 million credit facility acts as a safety net. CEO Zach Bradford’s use of the term “escape velocity” was music to our ears! Let’s face it, isn’t “escape velocity” what every company bleeding red ink wishes to be at? The holy grail for any business – miners included – is to reach a point where they can self-fund operations. That includes building up reserves and scaling up in smart ways.

Here’s where the surprising link comes in. Consider CleanSpark’s gambit the equivalent of a farmer high-tailing it home from town with his seed corn in order to outlast the drought. It saves him from starvation today, but what happens on next year’s harvest? Regardless, if selling Bitcoin puts downward pressure on the price, it hurts everyone, including CleanSpark themselves.

Will This Hurt the Industry?

The big question is scale. If CleanSpark is the only one with an eye on this, that’s fine. What happens if others follow suit? What if, in fact, the political wild card that nobody saw coming was Trump’s tariffs? Or could they incentivize other miners to follow suit and start adopting this strategy? Now imagine a multiplier effect happening. Miners rush to dump their valuable Bitcoin, competing to remain solvent in a tragic race to the bottom. The result? Dissolving cryptocurrency values and a vastly tougher time for all involved.

It’s the old “tragedy of the commons” at work in the digital age. The logic of each miner acting in their own self-interest could lead to the complete destruction of the thing they’re all trying to protect. This isn’t just a win for CleanSpark, it’s a win for the entire Bitcoin ecosystem. We should avoid being alarmist, but we should be cautious of the potential for unintended consequences.

Collaboration is the Only Way

Here’s where the emotional trigger of anxiety plays a role. The future of Bitcoin mining isn't just about technological advancements. It's about collaboration. The surprise is that the industry’s future isn’t just in technology stacks, but in a community that can sometimes seem divided and adversarial and yet should feel competitive.

We can’t afford to continue with this “every miner for themselves” mentality. Miners in the US, like CleanSpark, need to be talking to their counterparts in Asia, like Bitdeer, and sharing strategies. Bitdeer is exploring manufacturing mining hardware in the US to mitigate the impact of tariffs, and that's a smart move.

What if it’s the case that miners collectively lobby and push back, and keep more of that deal in negotiations with energy? Imagine if they use the collaborative fund to create far more productive mining technologies? What if they put that money to work and actively lobbied for policies that would nurture the industry’s long-term growth?

The halving has arrived, Trump’s tariffs are hanging over our heads like the Sword of Damocles, and market volatility is nonstop. We must create an environment for better communication and collective accountability.

CleanSpark’s “self-funding” model can’t gloss over the surface of a much more troubling issue. It’s a reflection of the extreme financial constraints under which Bitcoin miners are operating right now. Yet it calls out the extreme urgency for a pioneering collaboration, innovation and long-term vision that goes well beyond just surviving another day. The power of collective intelligence can help create a more resilient and sustainable future for us all, our shared home.

  • Industry Forums: Participate in online and offline forums to share best practices.
  • Lobbying Efforts: Support organizations that advocate for policies that benefit the Bitcoin mining industry.
  • Direct Communication: Reach out to other miners to discuss potential collaborations.

It's time to start talking. And are we doing it in a way that builds a sustainable future for Bitcoin mining, or are we just delaying the inevitable through none of this? The answer depends on you.

It's time to start talking. Are we building a sustainable future for Bitcoin mining, or are we just kicking the can down the road? The answer depends on you.