VanEck Suggests Mining Royalties to Grow US Bitcoin Reserve

VanEck’s Matthew Sigel proposes a tax-neutral BTC accumulation plan via mining royalties. The idea includes tax breaks for miners converting waste methane and would expand the US Bitcoin reserve.

Royalty concept introduced at Bitcoin 2025 Conference

During a panel at Bitcoin Conference 2025 in Las Vegas, VanEck’s Matthew Sigel proposed a mining royalty system. He urged lawmakers to require US-based Bitcoin miners to send a portion of block rewards to the Treasury.

Sigel outlined two potential funding paths. The first is executive action, tapping into the Exchange Stabilization Fund for an initial $100 million BTC buy. However, he cautioned that larger purchases might face political and legal backlash.

Legislative path through budget reconciliation

A more sustainable option, Sigel said, is to pass royalty language via budget reconciliation. This requires only 51 Senate votes.

He recommended inserting minor amendments in all future bills that direct miners to send BTC shares to the government. His remarks follow Trump’s March 6 executive order establishing the Strategic Bitcoin Reserve and Digital Asset Stockpile.

Tax incentives for methane-powered mining

Sigel argued that miners capturing waste methane should receive tax relief. These operators could deploy mobile rigs, convert methane into energy, and earn BTC rewards tax-free.

In return, miners would send a small percentage—possibly in single digits—directly to a Treasury wallet. This strategy reduces emissions and builds a decentralized reserve without using taxpayer dollars.

Implementation plan and policy roadmap

To advance the idea, Sigel called for bipartisan support to embed royalties into energy and defense bills. He referenced oil-and-gas revenue models as a precedent.

He also pushed for state regulators to fast-track permits for compliant miners, similar to incentives given to renewable energy projects. With swift action, Sigel said, the US could “stack sats” within the current fiscal year.