Producing a single Bitcoin is becoming increasingly expensive. Between the rising hash rate and rising electricity prices, the average mining cost increased sharply in the second quarter of 2025. This dynamic calls into question the profitability of many miners and could impact supply in the medium term.
Ever more energy-intensive production
- The continued increase in the global hash rate reflects increased competition between miners, requiring more powerful and energy-intensive equipment.
- This trend is accompanied by a significant increase in energy consumption, making the extraction of each Bitcoin (BTC) more expensive.
Energy bills are rising
- In several regions of the world, electricity prices are rising, increasing the pressure on mining operators' margins.
- Some small miners are beginning to withdraw or sell their equipment, making way for larger, better-capitalized companies.
Opportunities and Threats
Opportunities:
- Industry Consolidation: Large players could strengthen their position against less profitable competitors.
- Incentives for Innovation: This cost pressure could accelerate the adoption of renewable energy sources and more efficient technologies.
Threats:
- Exit of Small Miners: Declining profitability risks excluding many players, reducing network decentralization.
- Rising Price Floor: Higher production costs could create upward pressure on the Bitcoin price in the medium term.
Conclusion
The rising cost of Bitcoin production marks a new stage in the maturation of the sector. Between energy tensions and technological evolution, the mining industry is entering a phase of natural selection. The most resilient players could emerge stronger, but at the cost of a potentially less decentralized network.
