Bitcoin Mining Goes Institutional – But Can It Survive Tariffs, AI Grid Wars, and Fee Collapse?
Main Idea
Bitcoin mining in 2025 has shifted from a focus on hashpower to an infrastructure war, with miners facing challenges from tariffs, AI competition, and energy costs, while institutional capital continues to pour into the sector.
Key Points
1. Bitcoin mining has evolved into an infrastructure war, with major players like Riot Platforms pausing expansions and shifting focus to AI cloud services.
2. Institutional capital is increasing, but miners are squeezed by rising energy costs and competition from AI infrastructure.
3. Legacy ASIC hardware, such as the S19 generation, is becoming unprofitable due to high electricity costs and low hash prices.
4. Miners must balance debt, equity, and retained BTC while preparing for further pressure from AI, regulation, and energy costs.
5. The industry faces internal challenges like halving events and external competition, requiring tough decisions on scale and strategy.
Description
In 2025, Bitcoin mining is no longer just a competition over hashpower and block rewards—it has evolved into a full-scale infrastructure war, where access to energy, geopolitical positioning, and integration with emerging technologies like AI define who survives and who fades out. According to the newly released Bitcoin Mining Market Review and Key Trends authored by Nico Smid, research analyst at GoMining Institutional, and Fakhul Miah, managing director at GoMining Institutional, the industry ...
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