2025 proved to be one of the toughest years for Bitcoin miners in terms of profitability: the network's hashrate increased while revenue per unit of power declined. Hashrate climbed from about 800 EH/s at the start of the year to a record 1.15 ZH/s, with difficulty peaking at 155.98 T. Amid these shifts, the hashprice dropped to around $35 per PH/s, significantly squeezing miners' margins.
Economic Conditions of Mining in 2025
The rise in computational power and high network difficulty intensified competition among operators, impacting profitability. The average direct cost to mine one Bitcoin for public miners in Q2 was approximately $74,600, while the industry's total debt surged to $12.7 billion over the year, increasing severalfold compared to the previous period. MARA Holdings CEO Fred Thiel explicitly stated that the industry has entered an extremely challenging phase due to declining profitability and capacity expansion.
At the same time, profitability metrics, including hashprice, showed strong volatility: in November, the hashprice fell to about $35 per PH/s and did not rise above $40 thereafter. This trend prolongs the payback period for modern rigs and calls into question the viability of less efficient farms.
Miners’ Shift Toward AI
In response to profitability pressures, some public companies are increasingly diversifying into AI infrastructure. For example, CleanSpark reported doubling its annual revenue thanks to AI initiatives, while Bitfarms announced plans to gradually wind down mining operations and transition to AI infrastructure development by 2027. Galaxy Digital fully repurposed its Helios data center to serve AI needs through a deal with a hyperscaler.
This strategic diversification runs parallel to maintaining or even increasing hashrate for some companies: mining revenue remains a crucial cash flow source needed to finance equipment repurposing and capital investments in new directions.
New Mining Equipment
Manufacturers updated their product lines aiming to reduce energy consumption per hash and thereby improve profitability. Bitmain introduced the Antminer S23 Hydro with a claimed energy efficiency of 9.5 J/TH, while Canaan released the Avalon A16 and A16XP models consuming 13.8 J/TH and 12.8 J/TH respectively. Other models from various vendors also appeared, targeting improved performance and efficiency.
- Antminer S23 Hydro — 9.5 J/TH.
- Avalon A16 — 13.8 J/TH; Avalon A16XP — 12.8 J/TH.
- Also introduced: Proto Rig, SEALMINER A3, Teraflux, and the WhatsMiner M70 series.
Mining Geography in 2025
Computational power distribution remained concentrated: the US share of global hashrate approached 40%, Russia held second place with 15.5%, and China exceeded 14%. The high concentration in a few countries explains why regulatory or trade policy changes immediately impact the global mining map.
For local miners, this means competition for cheap electricity and access to new equipment models remains a key factor. More details on the situation in Russia can be found in the article about mining in Russia, which compiles regional results and conclusions.
Financial Metrics and Miner Debt
Margin pressures were accompanied by rising debt burdens: total miner debt reached $12.7 billion, sharply narrowing companies’ financial buffers. Public miners showed high operational and non-cash expenses, complicating business balancing and requiring additional financing sources.
More details on income declines and debt growth are available in the article on the mining crisis, which describes consequences for operators of various scales. Under these conditions, many participants seek ways to cut costs and monetize capacity alternatively.
Why This Matters
Whether you operate from one to a thousand devices, these processes directly affect profitability: rising difficulty and low hashprice reduce daily revenue per hash, while high debt among public companies reflects overall industry pressure. Even with stable Bitcoin prices, intense competition and outdated equipment can render mining unprofitable.
The shift of major players into AI reduces capital availability and changes demand for hosting services: some data centers may change focus, impacting hosting service supply and access to new machines on the market.
What to Do?
Below are practical steps that can be applied without additional research or price forecasts.
- Assess actual costs — recalculate operating expenses and electricity rates to understand current margins.
- Check equipment efficiency — compare energy consumption of current devices with new models and optimize older rigs if needed.
- Reduce variable costs — optimize operation schedules, use night or seasonal tariffs where possible.
- Consider hosting or colocation services, as well as partial revenue diversification including joint use of capacity for other computing tasks.
- Monitor liquidity and debt levels — avoid aggressive borrowing in low-margin, high-volatility conditions.
If needed, start with small steps: recalculating costs and planning operational expense reductions are minimal actions that yield quick effects for home or small farms. Larger operations should compare the economics of continuing mining versus partial conversion of capacity to other tasks.
Frequently Asked Questions
How does the drop in hashprice affect my farm’s profitability? A decline in hashprice lowers revenue per unit of power, so with unchanged expenses, margins shrink. Recalculate your income based on current hashprice and your costs to determine if you remain profitable.
Should I consider switching to AI infrastructure? Transitioning requires significant investment and time, so it’s not always feasible for small miners. For some operators, diversification through hosting or partnerships and gradual equipment upgrades is more practical.