Bitcoin Mining Costs Surge Amid Rising Hashrate and Energy Prices
The median cost of Bitcoin mining has increased significantly, climbing from $52,000 in the fourth quarter of 2024 to an estimated $70,000 in the second quarter of 2025. This 9% rise stems from higher network hashrate and escalating energy prices. While Bitcoin’s price remains around $107,635, providing some cushion, the rising production costs are squeezing less efficient miners.
Operational Efficiency Becomes Critical for Miners
To counterbalance the increasing expenses, public mining companies are prioritizing operational efficiency. In the first quarter, the median fleet hashcost held steady at $34 per petahash per second (PH/s). However, firms like Terawulf and Bitdeer reported cost increases exceeding 25%, largely due to spikes in energy prices.
Investors Show Preference for Diversified Revenue Streams
The performance of Bitcoin mining stocks has varied, with investors favoring companies that diversify beyond mining. For instance, IREN saw a 21.4% surge, while Canaan and Bitfarms experienced declines of over 21%. Diversification into areas like AI hosting is proving essential for long-term stability.
