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In short
- The falling value of Bitcoin is vulnerable to making Bitcoin mining unprofitable in the US, relying on power charges.
- Different international locations additionally face a scenario the place the price of mining one Bitcoin is greater than that Bitcoin is price, though some main Bitcoin mining territories—together with Paraguay—proceed to learn from comparatively low-cost power.
- Specialists say that, with out substantial value will increase, the following Bitcoin halving may put important pressure on miners.
Bitcoin now prices extra to mine in the US than its present market value, in accordance with knowledge from the Cambridge Bitcoin Electrical energy Consumption Index (CBECI).
The cryptocurrency is presently buying and selling at round $87,900 in accordance with CoinGecko knowledge, whereas knowledge from the CBEIC and the U.S. Power Data Administration (EIA)—which places the typical nationwide value per kWh of power in October 2025 at $0.14—counsel that the present value of mining one Bitcoin is $94,746.
This common value incorporates dearer residential and industrial costs, however when taking solely common industrial costs for all states ($0.09 in October), the typical value of mining one Bitcoin remains to be $86,931.
Given ongoing geopolitical and macroeconomic uncertainty, Bitcoin may very well be vulnerable to falling beneath this stage, probably placing higher pressure on miners primarily based within the U.S.
The scenario is comparable and even worse in different international locations, with China’s common enterprise power price hitting $0.11 per kWh in June 2025, that means that it prices $88,869 on common to mine a single Bitcoin.
GlobalPetrolPrices.com provides the identical price of $0.11 per kWh for Russia, whereas Canada advantages from a barely decrease price of $0.10, equalling a price of mining one Bitcoin of $88,003.
For example of 1 nation the place large-scale mining isn’t commercially viable, commerce physique Cryptocurrency NZ has calculated that the associated fee to mine a single BTC in New Zealand is now NZ$173,192.96, or $103,799.
Alternatively, Paraguay—which now accounts for round 4% of Bitcoin’s hashrate—has a mean mining value of roughly $59,650, given its common electrical energy value for companies of $0.05.
US miners pivot to AI
Mining operations are effectively conscious of how troublesome the present scenario will be, with 9 American mining corporations—Riot Platforms, Bitfarms, Core Scientific, Riot, IREN, TeraWulf, CleanSpark, Bit Digital, MARA Holdings and Cipher Mining—having pivoted both wholly or partially to changing into AI knowledge facilities up to now 12 months and a half.
Talking to Decrypt, Canaan’s VP of Capital Markets and Company Growth, Leo Wang, stated that miners who’ve taken on an excessive amount of debt to function, or who’ve deployed overpriced or “shortly out of date” {hardware}, have confronted the prospect of unprofitability in recent times and months.
Nevertheless, he affirmed that Canaan has taken strategic choices to cut back its danger profile, together with an avoidance of extreme debt, in addition to the design and sale of its personal mining {hardware}, in order to generate money move and offset bills.
He stated, “We attempt to preserve our energy value beneath 4 cents/kWh, which has traditionally been sustainable via bear markets, preserve each day operational oversight with companions, and deploy machines solely when energy and operations are totally prepared.”
Canaan additionally maintains internet hosting agreements that give it the fitting to cut back or shut operations particularly areas, assuming that the economics now not work.
“From lower-cost markets to off-grid power operations in Canada, our international footprint and technical capabilities additionally permit us to discover new power sources and power reuse, which reduces our reliance on any single grid or energy supply over time,” he added.
Extra usually, Digiconomist founder Alex de Vries notes that, whereas computational problem has peaked not too long ago, the declining value of Bitcoin is making issues more and more troublesome for miners.
“You are able to do the maths your self contemplating it takes about 1.2 million kWh to mine one Bitcoin in the mean time,” he advised Decrypt. “At a value of $85k per coin, something above simply 7 cents per kWh in prices will put you at a loss.”
De Vries concluded that Bitcoin mining being unprofitable will “truly be quite common in most locations,” since very low charges will not be simple to safe. (these extremely low charges will not be simple to get).
With one other reward halving coming in two years, Bitcoin miners will want the cryptocurrency’s value to start rising once more quickly.
“That’s nonetheless fairly a while,” De Vries stated, “however with out substantial will increase within the value stage by then the miners would get squeezed even additional.”
