If you decide that you are mining cryptocurrency as a hobby and not as a business then you would report the mining income as regular income on form 1040 schedule 1. If you are mining cryptocurrency as a business then you would report is on Schedule C.
There are advantages to both ways. Schedule 1 income results in no self employment taxes but you are unable to deduct expenses against hobby income. Schedule C income does result in self-employment tax but allows you to deduct the expenses related to datamining.
If the datamining has resulted in significant gains then the IRS will almost certainly view it as an income producing activity and expect it to be entered on schedule C.
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