Editorial staff
The Hard Math: Mining One Bitcoin Isn’t Cheap
So far this year, the average cost to mine one BTC has climbed to a painful $70,400. Just a few months ago, in Q1, that figure was closer to $64,000 — and even that wasn’t easy to swallow. In the U.S., it's worse. With electricity hovering around $0.13/kWh, you’re looking at $111,072 per coin.
Let that sink in. Over 850,000 kilowatt-hours just to mint one Bitcoin.
That’s not a typo. That’s the reality.
What’s Driving the Spike?
A few things, actually — and they all compound each other.
- Hashrate explosion: The global hashrate is now pushing 895 EH/s. It’s like joining a race where everyone else showed up in a Ferrari.
- Energy costs are up — again: Some miners are reporting 25% increases over last year. That’s a dealbreaker for many.
- Hardware gains are slowing: Yes, new rigs are out. But shaving a few joules per terahash isn’t enough when rewards are down.
- The halving hit hard: Rewards were sliced in half in 2024. Now you’re fighting twice as hard for half the payoff.
The Geography Game
Where you mine matters — maybe more than what you mine with.
Operations in Iceland, Paraguay, or certain Canadian provinces are surviving on ultra-cheap hydro or geothermal power. In contrast, miners in high-cost regions are either shutting down or moving out.
It’s not just about climate anymore. It’s about policy, infrastructure, and, sometimes, political risk.
Profitability? It’s Possible — Barely
Let’s not sugarcoat it: most casual miners are out.
If you’re still standing, you’ve probably done at least three things right:
- Locked in sub-market electricity rates
- Bought the best-performing hardware
- Located your operations somewhere smart
Even then, margins are razor-thin. One power outage, one bad batch of machines, or one regulatory surprise — and you're underwater.
Why Colocation is Winning Right Now
Here’s where things get interesting. Some of the more nimble miners are skipping DIY setups entirely and opting for btc colocation — basically, renting space (and power) in pro-run mining facilities.
Why? Because:
- They get bulk electricity rates
- Their machines are monitored 24/7
- Backup systems prevent catastrophic downtime
- Compliance headaches are offloaded
In a landscape this unforgiving, shared infrastructure makes sense. It’s leaner. It’s smarter. It’s survival.
Final Thoughts: It’s Still Worth It — For the Right Player
The dream of mining Bitcoin in your garage? That ship has sailed.
But for those willing to treat it like a business — not a hobby — opportunity still exists. Just don’t come in half-prepared.
If you're not optimizing everything — from your power source to your firmware — someone else is. And they’ll outlast you.
The game has changed. The gold rush is over. What’s left is the hard grind — and for the few who can keep up, the rewards are still real.
Editorial staff
