Bitcoin mining is expected to remain profitable in 2025, with the cost of production staying steady, according to a recent research report from Canaccord Genuity.
The report highlights strong mining fundamentals, noting that the cost to mine one bitcoin for larger miners is currently in the range of $26,000 to $28,000. As of the report’s publication, Bitcoin was trading at approximately $105,000.
Canaccord also pointed out that increasing attention is being focused on alternative uses for the significant energy supplies held by mining companies, particularly in the field of artificial intelligence (AI) data center hosting.
For instance, Core Scientific (CORZ) made waves last June when it signed a 12-year contract with AI hyperscaler CoreWeave. The move is seen as transformative for the sector, with analysts projecting that AI demand will eventually surpass the traditional cloud hosting market.
More co-hosting agreements are anticipated to be announced this year, including potential deals from Galaxy Digital (GLXY) and Applied Digital (APLD), the report added.
Canaccord noted that many of the larger publicly traded miners are investing in fleet upgrades following the reward halving event in April 2024. This is positioning them to further increase their network hashrate share and improve their competitive standing. The hashrate, a key metric in mining, represents the total computational power used to process transactions on the blockchain and is an indicator of mining competition and difficulty.
