The median cost of mining a single Bitcoin has surged past $70,000 in the second quarter, driven by rising network hashrates and energy prices.
A report released Monday by Bitcoin mining research firm TheMinerMag revealed that production costs increased from $52,000 in Q4 2024 to $64,000 in Q1 2025. That figure is projected to climb by more than 9% in Q2.
“Direct production costs are expected to surpass $70,000 in the current quarter,” TheMinerMag stated in its May/June industry update.
Bitcoin’s price surge is providing relief for miners
A climb to $70,000 represents an increase of nearly 9.4%, which could squeeze the profit margins of less efficient Bitcoin miners.
Although Bitcoin is currently trading around $107,635, giving most miners a comfortable cushion, the production cost estimates exclude factors such as equipment depreciation and Bitcoin earned from hosting services, among others.
Minimizing fleet costs remains a key priority
As mining production costs continue to climb, public companies are increasingly prioritizing operational efficiency—especially when it comes to managing fleet hashcost, the expense associated with the computing power needed to mine Bitcoin, TheMinerMag reported.
In the first quarter, the median fleet hashcost among public miners remained stable at around $34 per petahash per second (PH/s). However, the report noted that some companies, including Terawulf and Bitdeer, experienced cost increases exceeding 25%.
Terawulf attributed its higher expenses mainly to a spike in energy prices, which rose to $0.081 per kilowatt-hour (kWh) in Q1—nearly double the $0.041 per kWh recorded in the same period of 2024.
Mining stocks diverge as investors favor revenue diversification
Bitcoin mining stocks have been moving in different directions as investors show growing preference for companies with diversified revenue streams beyond just mining, according to TheMinerMag.
Between May 4 and June 13, Bitcoin rose by 1.35%, while IREN (IREN) surged 21.4%. Core Scientific (CORZ), Bit Digital (BTBT), and Cipher Mining (CIFR) also recorded double-digit gains during the period.
On the other hand, Canaan (CAN) and Bitfarms (BITF) were among the weakest performers, each seeing declines of over 21%.
“The gap between the best and worst-performing mining stocks has widened considerably, highlighting investors’ increasing emphasis on revenue diversification beyond traditional Bitcoin mining.”
In recent months, many Bitcoin miners have expanded into areas like AI hosting and high-performance computing services to broaden their income streams.
