Bitcoin mining expenses continue escalating due to soaring energy costs and increased network competition, with production expenses expected to exceed $70,000 per Bitcoin in Q2 2025.
The median mining cost jumped from $52,000 per Bitcoin in Q4 2024 to $64,000 in Q1 2025, reflecting significant energy price inflation across the industry. Prominent miners like Terawulf reported electricity expenses nearly doubling year-over-year, rising from $0.041 per kWh in Q1 2024 to $0.081 per kWh in Q1 2025.
Despite Bitcoin’s market price hovering near $107,635 providing profitability buffer for efficient operations, older mining equipment faces sustainability challenges. Public miners are mitigating risks by optimizing fleet efficiency, successfully maintaining median fleet hashcost around $34 per PH/s in early 2025.
Investment trends reveal diverging fortunes within the sector: companies diversifying into auxiliary ventures such as AI hosting receive stronger market support, while pure-play mining firms witness declining stock valuations. This evolving landscape signals heightened consolidation pressure on miners lacking diversified revenue strategies.