Catenaa, Friday, May 02, 2025-Bitcoin mining has become increasingly unprofitable, with energy and hardware costs now outpacing the cryptocurrency’s market value for many miners, according to data from CoinShares.1
While Bitcoin’s price has rebounded to about $95,000, the cost of mining a single coin has risen sharply. For large-scale mining companies, the average cost to produce one Bitcoin now exceeds $82,000—narrowing margins that were once considerably more lucrative. Just one quarter ago, the cost stood at $56,000, marking a 47% increase.
CoinShares report is seen here.
The outlook is even bleaker for smaller operators, according to the report.
In the US, smaller miners face production costs as high as $137,000 per coin. In Germany, that figure climbs to roughly $200,000—well beyond even Bitcoin’s all-time high.
The soaring expenses are driven by several factors.
Electricity prices have surged globally due to inflation, heightened demand from AI technologies, and tariffs tied to President Donald Trump’s trade policies.
Meanwhile, the 2024 Bitcoin halving—designed to reduce supply by cutting mining rewards—has lowered returns for those maintaining the network.
The report says that for many, the mining model no longer adds up, raising concerns over centralization.
Data from BitInfoCharts also shows that more than 90% of Bitcoin in circulation is held by the top 1% of wallets, exhibiting a growing inequality in the system designed to be decentralized.
As profitability wanes, the future of grassroots mining looks uncertain, potentially leaving Bitcoin’s control further concentrated in the hands of the wealthy.
