The cost of mining a single Bitcoin has climbed to new highs, with median production expenses projected to exceed $70,000 in the second quarter of 2025.
This marks a significant increase from $64,000 in Q1, according to a fresh industry report from research firm TheMinerMag.
The rise — nearly 9.4% quarter-over-quarter — is largely attributed to escalating energy prices and growing network hashrates, both of which are tightening margins across the Bitcoin mining sector. In Q4 2024, the median cost to produce one Bitcoin was around $52,000.
Despite Bitcoin’s current trading price hovering near $107,635, the narrowing profit margins are beginning to pressure miners, particularly those operating with outdated equipment or less energy-efficient strategies. TheMinerMag cautioned that its production cost estimates exclude factors such as equipment depreciation and mining rewards generated from leased hardware, suggesting that true profitability may be slimmer than it appears.
Publicly traded mining companies have ramped up efforts to boost operational efficiency, with a strong emphasis on managing “fleet hashcost” — the expense per unit of computing power. In Q1 2025, the median fleet hash cost held steady at $34 per petahash per second (PH/s). Still, some miners, including Terawulf and Bitdeer, faced production cost increases of over 25%.
Terawulf attributed its rising costs to energy prices, which jumped to $0.081 per kilowatt-hour (kWh) in Q1 — nearly double the $0.041 per kWh it paid in the same period last year.
Investor sentiment has also shifted, with mining stocks diverging sharply based on business models. Companies with diversified revenue streams beyond just Bitcoin mining have seen strong performance. Between May 4 and June 13, IREN (IREN) gained 21.4%, while Core Scientific (CORZ), Bit Digital (BTBT), and Cipher Mining (CIFR) all posted double-digit gains.
On the flip side, hardware-heavy players like Canaan (CAN) and Bitfarms (BITF) have struggled, each declining by over 21% during the same timeframe.
Meanwhile, CleanSpark Inc. reported strong operational performance for May 2025, pushing closer to its goal of becoming the first publicly traded Bitcoin miner to reach 50 exahashes per second (EH/s) entirely through self-operated infrastructure.
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