Bitcoin Mining Faces Pressure as Power Costs Rise

Bitcoin mining in 2025 faces new challenges. Rising electricity costs, growing Bitcoin ETF demand and AI infrastructure needs are reshaping the industry. Learn how this affects miners’ profitability.

New Challenges for Bitcoin Miners

In 2025, the Bitcoin mining industry is under significant pressure. Traditionally, miners operated in sync with the four-year halving cycle. However, at the SALT conference in Jackson Hole, industry leaders highlighted new dynamics: soaring power costs, increasing Bitcoin ETF adoption and growing demand for artificial intelligence infrastructure.

Matt Schultz, CEO of Cleanspark, said: “We used to talk about hash rate, now it’s about monetizing megawatts.”

His company operates 800 megawatts of energy capacity and is developing an additional 1.2 gigawatts, expanding beyond the traditional proof-of-work model.

Profitability Depends on Ultra-Low Power

Patrick Fleury, CFO of Terawulf, emphasized that Bitcoin mining has become an “incredibly difficult business.” With electricity priced at $0.05 per kWh, it costs around $60,000 to mine a single Bitcoin. At a BTC price of $115,000, half the revenue is consumed by electricity alone, leaving little room for profit after expenses.

This means profitability now depends almost entirely on securing access to ultra-low-cost power. Without it, miners face shrinking margins and possible market exit.