Bitcoin News Update: As Bitcoin Miners See Declining Profits, HPC Shifts Drive Stock Prices Up

Bitcoin Miners Confront Fresh Challenges as Earnings Decline, But Mining Stocks Rise

Bitcoin mining companies are contending with a twofold challenge: transaction fee income has dropped to its lowest point in a year while operational expenses continue to climb. Nevertheless, shifts in strategy and market forces have helped support mining stock prices. Daily fee revenue has

, now accounting for less than 1% of miners’ total earnings, as a result of lighter network activity and fewer transactions. This reduction has made miners more dependent on block rewards, exposing them to greater risk if prices fall further. Smaller mining outfits are especially vulnerable, with if profit margins keep narrowing.

Rising costs are adding to these difficulties.

(WULF), for example, posted a 37% increase in revenue year-over-year for Q3 2025, reaching $35.4 million, but its expenses jumped 46% to $21.8 million, largely due to higher energy bills and depreciation from expanding its mining equipment. , down from 42% the previous year. Likewise, (RIOT) and (CIFR) delivered mixed financial results, with sustaining a relatively strong 41% gross margin despite cost increases .

In spite of these obstacles, mining stocks have attracted renewed attention from investors. JPMorgan analysts upgraded Cipher and

(CLSK) to Overweight, highlighting long-term high-performance computing (HPC) contracts that could help miners transition into data center roles. in premarket trading after JPMorgan raised its price target from $12 to $18, citing its 410-megawatt HPC agreements and a recent 45% drop in share price. CleanSpark, which secured 200 MW of vital IT capacity at its Texas facility, also received a price target boost to $14 . This optimism stands in contrast to downgrades for larger miners such as Marathon Digital and Riot Platforms, and the effects of issuing more shares.

As the industry pivots toward HPC and cloud computing deals, company valuations are being reshaped, and there is growing interest in

. of new critical IT capacity could be announced by the end of 2026, with HPC facilities potentially driving up company valuations. This development mirrors moves by firms like IREN Limited, which landed a $9.7 billion cloud contract with Microsoft, though its stock remains underweight due to lofty expectations .

At the same time, Bitcoin’s price decline has heightened risks for companies heavily invested in crypto assets. MicroStrategy (MSTR), which owns $56 billion worth of Bitcoin,

by MSCI—a move that, according to JPMorgan, might lead to $11.6 billion in outflows. MSTR’s stock has dropped more than 40% in the past month, and its ability to raise capital through equity.

Meanwhile, the growing divide in the sector highlights a significant shift: miners with diversified HPC strategies are outperforming those who depend solely on Bitcoin’s price movements.

, “The capacity to turn power assets into stable, long-term HPC revenue sets these miners apart from traditional models.” This strategic change could help stabilize miner revenues during periods of crypto market volatility.

For now, the outlook remains unclear. Unless network activity increases, fee revenue is unlikely to recover, but strategic adaptation and institutional demand for HPC resources may help soften the impact. Still, investors should keep a close eye on Bitcoin’s price trends and broader economic conditions, as these will continue to play a crucial role in the industry’s future prospects.