The cash cost per mined BTC averaged $74,600 in Q2 2025.
The total cost, including non-cash expenses, reached $137,800.
The rise in costs could affect the profitability of mining and market behavior.
Bitcoin mining is becoming significantly more expensive. In the second quarter of 2025, publicly traded Bitcoin mining companies reported an average cash cost of around $74,600 to produce a single BTC. When non-cash expenses such as depreciation and stock-based compensation are added, the total cost per BTC skyrocketed to around $137,800.
These figures are alarming for the mining industry, particularly after the Bitcoin halving in April 2024, which halved mining rewards. The sharp increase in costs threatens profitability, especially for small players or those with higher energy prices.
What is driving costs higher?
Several factors are driving up Bitcoin mining costs:
Energy prices: Electricity remains the largest operational expense for miners, and global price fluctuations continue to pressure margins.
Post-halving dynamics: With block rewards reduced from 6.25 BTC to 3.125 BTC, miners must work harder—or smarter—to earn the same income.
Infrastructure and scaling: Public miners often face high depreciation costs due to rapid hardware upgrades and large-scale facility maintenance.
Non-cash expenses, while they do not immediately drain liquidity, still impact reported profitability for companies and can affect stock prices and investor sentiment.
UPDATE: Publicly traded Bitcoin miners have seen their average cash cost per BTC rise to around $74,600 in Q2 2025, with total costs including non-cash expenses reaching approximately $137,800. pic.twitter.com/N08Gz6iK9d
— Cointelegraph (@Cointelegraph) December 3, 2025
What this means for the market
With total mining costs exceeding the current market price of Bitcoin, some miners may operate at a loss. This could lead to:
Consolidation: Smaller miners may close or be acquired.
Reduced hash rate: As unprofitable miners disconnect, network difficulty may adjust.
Potential tightening of supply: Fewer profitably mined BTC could reduce selling pressure in the market.
The industry's ability to adapt—through cost-saving technologies, energy optimization, or strategic partnerships—will be essential for navigating this challenging landscape.
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