- \n
- Bitcoin hashrate topped the symbolic 1 ZH\/s mark.<\/li>\n
- Rising network difficulty and a flat price squeezed mining economics.<\/li>\n
- \u201cTrump tariffs\u201d did not dent America\u2019s dominance in mining.<\/li>\n
- Miners\u2019 diversification into AI accelerated.\u00a0<\/li>\n<\/ul>\n<\/div>\n
- \n
- <\/li>\n<\/ul>\n
Technically, the network strengthened markedly<\/h2>\n
Hashrate<\/a> started the year around 800 EH\/s and in October reached an all-time high of 1.15 ZH\/s (7 DMA<\/span>). After the autumn sell-off, the metric corrected but held the late-August level of 1 ZH\/s.<\/p>\n
![\"image\"](\"https:\/\/forklog.com\/wp-content\/uploads\/img-718010e3ca15cd5c-1361151010681905-1024x499.png\")
Hashrate (7 DMA). Source: Glassnode<\/a>.<\/figcaption><\/figure>\n The increase since January was about 25%. According to Coin Metrics<\/a>, mass deployment of Antminer S21 rigs with energy efficiency of 13\u201316.5 J\/TH, depending on the model, contributed significantly. By October their share of aggregate hashrate had reached roughly 20%.<\/p>\n
![\"image\"](\"https:\/\/forklog.com\/wp-content\/uploads\/img-c976f446e2ca70a2-1361150892708543.webp\")
Hashrate by ASIC model. Source: Coin Metrics.<\/figcaption><\/figure>\n The bitcoin rally that began after Donald Trump\u2019s election as US president in November 2024 brought back fairly old Whatsminer M32 units. Launched in August 2020, they run at around 50 J\/TH. Since January the share of Antminer S9s, first released in 2017 and rated at ~93 J\/TH, has also been rising. Together these ASICs generate ~15% of hashrate.\u00a0<\/p>\n
Various Antminer S19 variants remain the backbone of the global fleet, accounting for about half of the network\u2019s compute.<\/p>\n
Difficulty, which correlates with hashrate, hit an all-time high in late October at 155.98 T. Against this backdrop, MARA Holdings CEO Fred Thiel stated<\/a> that the industry had entered an exceptionally tough period owing to rising competition and falling profitability.\u00a0\u00a0<\/p>\n
The most severe profitability crunch in mining<\/h2>\n
Through the year, miners\u2019 revenue broadly followed bitcoin\u2019s price. Since July, fees\u2019 share of total revenue fell below 1%; income was almost entirely from block rewards. Following the April 2024 halving<\/a>, the reward is 3.125 BTC\u2014roughly 450 BTC per day.<\/p>\n
![\"image\"](\"https:\/\/forklog.com\/wp-content\/uploads\/img-fe142d0e1d703ecb-1361150956104432-1024x447.png\")
Miners\u2019 monthly revenue. Source: Newhedge<\/a>.<\/figcaption><\/figure>\n Monthly revenue ranged from about $1.19bn (April) to about $1.63bn (August).<\/p>\n
Per CoinShares, in the second quarter the average direct cash cost to mine a bitcoin at public miners was about $74,600. Including non-cash expenses such as depreciation and stock-based compensation, the figure rose to $137,800.<\/p>\n
![\"image\"](\"https:\/\/forklog.com\/wp-content\/uploads\/img-01be5394a16adab6-1361151144902257-1024x580.png\")
Cost to mine 1 BTC at leading public miners. Source: CoinShares.<\/figcaption><\/figure>\n Bitcoin only reached a record $126,080 in early October.<\/p>\n
Hashprice<\/span> hit a year-to-date high in July of $63.9 per PH\/s per day. In subsequent months the mining profitability metric fell steadily under pressure from rising difficulty and competition.\u00a0<\/p>\n
![\"image\"](\"https:\/\/forklog.com\/wp-content\/uploads\/img-cd6f27f4caf87233-1361150951260067-1024x369.jpeg\")
Hashprice since the start of the year. Source: Hashrate Index<\/a>.<\/figcaption><\/figure>\n After November\u2019s plunge of the original cryptocurrency below $83,000, hashprice fell to a yearly low of about $35 per PH\/s. Despite a later rebound, it did not rise above $40.<\/p>\n
Meanwhile the median \u201ccost of hash\u201d<\/span> among public miners in the third quarter was<\/a> roughly $44 per PH\/s. The figure includes equipment operating costs, corporate expenses and financing. It signalled that even operators with efficient fleets and competitive power tariffs were hovering around breakeven.<\/p>\n
![\"image\"](\"https:\/\/forklog.com\/wp-content\/uploads\/img-632ce9eb679d89cf-1361151049369368.webp\")
\u201cCost of hash\u201d for public miners. Source: TheMinerMag.<\/figcaption><\/figure>\n TheMinerMag\u2019s experts concluded miners faced the harshest profitability conditions in history.<\/p>\n
Payback periods for latest-generation rigs exceeded 1,000 days\u2014well beyond the time left until the next halving. Around April 2028 the block reward will drop to 1.5625 BTC.<\/p>\n
CoinShares projects hashprice will stay in a $37\u201355 range until then. Breaking out would require a substantial rise in bitcoin\u2019s price, as rising hashrate would absorb a moderate rally. The firm estimates network compute will reach 2 ZH\/s in early 2027.<\/p>\n
![\"image\"](\"https:\/\/forklog.com\/wp-content\/uploads\/img-22d4b92e047f3b83-1361150977390238.webp\")
Projected hashprice (black line). Source: CoinShares.\u00a0<\/figcaption><\/figure>\n Commenting on the tough economics, CoinShares\u2019 head of research James Butterfill said:<\/p>\n
\n
\u201cAgainst this backdrop, a clear strategic divergence has formed in the industry. A growing cohort of miners has accelerated its pivot toward AI and high-performance computing infrastructure, seeking to diversify the business away from an increasingly competitive and less profitable bitcoin mining.\u201d<\/em><\/p>\n<\/blockquote>\n
Diversification into AI gathers pace<\/h2>\n
The pivot by bitcoin miners toward serving the higher-margin AI sector was already evident last year. In 2025 it broadened, and deals ran into the billions of dollars.<\/p>\n
At the SALT conference in Jackson Hole in August, CleanSpark CEO Matt Schultz noted that where industry attendees once talked about hashrate, they now \u201cdiscuss how to monetise megawatts\u201d. TeraWulf CFO Patrick Flaherty admitted that even with the digital gold trading above $110,000 (at the time), electricity costs consume up to half of miners\u2019 revenue.<\/p>\n
CleanSpark doubled<\/a> annual revenue thanks to AI initiatives. Others in the industry also made notable moves:\u00a0<\/p>\n
- \n
- TeraWulf signed<\/a> a 10-year contract with cloud platform Fluidstack worth $3.7bn. Google acted as financial guarantor, becoming<\/a> the miner\u2019s largest shareholder;\u00a0\u00a0\u00a0<\/li>\n
- Cipher Mining entered into a lease with Amazon Web Services (AWS) worth $5.5bn<\/a> to support AI computing;<\/li>\n
- IREN will provide Microsoft with GPU-based cloud services. The total value of the five-year agreement is about $9.7bn<\/a>.\u00a0<\/li>\n<\/ul>\n
One of the oldest public mining firms, Bitfarms, announced<\/a> it would gradually wind down bitcoin mining by 2027 and pivot to AI infrastructure.\u00a0<\/p>\n
Galaxy Digital also decided to repurpose the Helios mining centre entirely for AI under an agreement with the hyperscaler CoreWeave<\/a>. In late 2022 Mike Novogratz\u2019s company bought the facility for $65m<\/a> from Argo Blockchain, which was experiencing financial difficulties<\/a>, becoming a significant hosting player for miners.<\/p>\n
Riot Platforms vice-president Josh Kane said<\/a> the firm no longer sees mining as the end goal, but rather as a means to achieve it.<\/p>\n
Its core aim is to maximise the value of access to electricity, including via more profitable lines of business.<\/p>\n
Even miners focused on AI diversification continued to expand their own hashrate, albeit at different speeds.<\/p>\n
![\"image\"](\"https:\/\/forklog.com\/wp-content\/uploads\/img-3502081a6e3c456a-1361150945821788.webp\")
Year-on-year hashrate growth at public miners (as of September). Source: TheMinerMag<\/a>.<\/figcaption><\/figure>\n Among major public companies, Core Scientific was the exception, which CoreWeave sought to acquire for $9bn<\/a>. The hyperscaler was already a partner and suggested that, after a merger, crypto-mining operations would gradually be wound down. Core Scientific\u2019s large shareholders rejected<\/a> the deal as undervaluing the company.<\/p>\n
One reason even miners expanding into AI still raised hashrate, analysts said, is the cash flow generated by established crypto-mining. It helps fund operations, since repurposing infrastructure requires significant capital and time.<\/p>\n
CoinShares analysts noted that building and operating a bitcoin mine typically costs around $700,000\u20131m per MW, whereas an AI data centre can cost up to $20m per MW. The gap reflects the redundancy and reliability needed to achieve 99.99% uptime.<\/p>\n
To cover rising costs\u2014both for upgrading mining fleets and refitting infrastructure for high-performance computing\u2014companies tapped financing. As a result, miners\u2019 aggregate debt rose sixfold<\/a> over the year, from $2.1bn to $12.7bn.<\/p>\n
Another reason to maintain a meaningful share of bitcoin\u2019s hashrate was a bet on potential attrition: if many miners operating at a loss switch off, the network\u2019s difficulty will fall and profitability for those left standing will jump.\u00a0<\/p>\n
MARA\u2019s chief was blunt. The company\u2019s task is to keep mining costs such that economic pressure forces at least 75% of competitors offline. Yet lowering costs is everyone\u2019s goal\u2014firms are shoring up balance-sheets, cutting corporate expenses and improving fleet efficiency. Equipment makers are responding to miners\u2019 demands.<\/p>\n
ASIC manufacturers kept up the arms race<\/h2>\n
In May Bitmain unveiled<\/a> the flagship of its newest bitcoin-miner series, the Antminer S23 Hydro, with a stated efficiency of 9.5 J\/TH. The comparison below shows how the leading manufacturer has improved that parameter over the past two years.<\/p>\n
![\"image\"](\"https:\/\/forklog.com\/wp-content\/uploads\/img-53dfabeeaf0daacd-1361150967552119.webp\")
Energy efficiency of Bitmain\u2019s last two ASIC generations. Source: CoinShares.<\/figcaption><\/figure>\n In October Canaan unveiled<\/a> a new generation of ASIC miners. The line-up includes two air-cooled models\u2014Avalon A16 (282 TH\/s) and Avalon A16XP (300 TH\/s)\u2014with power efficiency of 13.8 J\/TH and 12.8 J\/TH respectively.<\/p>\n
Early in the year the company also launched<\/a> the Avalon Mini 3 and Nano 3S, which combine bitcoin mining with home heating. The Avalon Mini 3 delivers 37.5 TH\/s and provides up to 800 W of heat. The Avalon Nano 3S at 6 TH\/s is a more powerful variant of the existing model.<\/p>\n
In August Jack Dorsey\u2019s Block introduced<\/a> modular Proto Rig systems for bitcoin mining. The developers say the units offer several advantages, including longer service life and better repairability. The solution cuts mining costs by 15\u201320%.<\/p>\n
As part of its roadmap, Bitdeer presented<\/a> the SEALMINER A3 series in September. The air-cooled ASIC delivers 260 TH\/s at 14 J\/TH. The A3 Hydro model is rated at 500 TH\/s and 13.5 J\/TH.<\/p>\n
In November, US firm Auradine opened pre-orders<\/a> for third-generation Teraflux units. The miners are fully designed and manufactured in the United States, it said. In Eco mode the air-cooled model delivers 240 TH\/s at 10.3 J\/TH.\u00a0<\/p>\n
The liquid-cooled system delivers 600 TH\/s at 9.8 J\/TH. The immersion variant delivers 240 TH\/s at the same efficiency.<\/p>\n
In December at the Bitcoin MENA 2025 conference in Abu Dhabi, MicroBT presented<\/a> its new WhatsMiner M70 series. The line-up spans three efficiency classes:<\/p>\n
- \n
- 14.5 J\/TH (entry model M70);<\/li>\n
- 13.5 J\/TH (M70S);<\/li>\n
- 12.5 J\/TH (M70S+).<\/li>\n<\/ul>\n
Air-cooled units deliver 214\u2013244 TH\/s.\u00a0<\/p>\n
Immersion-cooled variants (M76 and M78) deliver 336\u2013476 TH\/s.<\/p>\n
Thus, over the past year every leading manufacturer of bitcoin miners refreshed its model range.<\/p>\n
In February it emerged that import issues for the latest Antminer S21 and T21 devices in the United States, which arose in the autumn<\/a> of 2024, had worsened<\/a>. Customs began detaining products from MicroBT and Canaan, also based in China. According to Bloomberg, Bitmain is<\/a> the subject of a US investigation over potential national-security risks.\u00a0<\/p>\n
Meanwhile, the trend toward opening assembly operations in the United States continued to expand. The process accelerated after the the announcement of<\/a> Trump\u2019s \u201cliberty tariffs\u201d. Rates of 24\u201336% on goods from Malaysia, Thailand and Indonesia\u2014where most ASIC production is located\u2014threatened to hit demand from US miners. In 2024 they imported $2.3bn of equipment.<\/p>\n
Following Canaan, MicroBT and Bitmain, Bitdeer also announced localisation in the United States.<\/p>\n
Some experts suggested tariff wars could shake America\u2019s dominance in hashrate; they did not.\u00a0<\/p>\n
Mining geography: the leader remains the same\u00a0<\/h2>\n
By the end of the third quarter, the US share of global hashrate was close to 40%. Russia held second place with 15.5%, and China exceeded 14%.\u00a0\u00a0<\/p>\n
![\"image\"](\"https:\/\/forklog.com\/wp-content\/uploads\/img-569798b43d3cba41-1361151051415701.webp\")
Hashrate by country. Source: Hashrate Index<\/a>.<\/figcaption><\/figure>\n Together the three countries controlled about 67.5% of the network\u2019s compute. But trends diverged. Contrary to fears, the United States continued to extend its lead, while Russia gradually lost share.<\/p>\n
China\u2019s mining history shows that access to cheap power remains one of the most important drivers of geography. Reuters confirmed<\/a> that, after authorities banned crypto mining in 2021, it did not cease\u2014it went underground.\u00a0<\/p>\n
After China\u2019s share of global hashrate fell to zero, it recovered. Surplus electricity in former mining centres such as Xinjiang and Sichuan played a large role, as owners of remote coal, wind and hydro plants often struggle to find buyers.<\/p>\n
Contrary to concerns about a miner exodus from the US because of \u201cTrump tariffs\u201d, hashrate in other jurisdictions did not show significant changes. Neighbouring Canada held around 3%. The top ten also included Paraguay (3.9%), Oman (2.9%) and Ethiopia<\/a> (1.9%).<\/p>\n
Not every country\u2019s infrastructure can support crypto-mining loads. In Kyrgyzstan an electricity deficit forced the authorities to shut down<\/a> all mining farms. Because of elevated loads, the conservation regime will last until the end of the heating season.\u00a0<\/p>\n
In Iran, authorities continued<\/a> to crack down on illegal miners\u2014over 95% of the country\u2019s 427,000 devices are said to operate without licences.\u00a0\u00a0<\/p>\n
Prospects for a wider geographic footprint also emerged. In March Belarusian president Alexander Lukashenko approved<\/a> data-centre construction in the Mogilev region. Pakistan\u2019s authorities signalled plans to direct surplus electricity to crypto mining<\/a> and to power data centres that serve AI.\u00a0\u00a0<\/p>\n
Turkmenistan\u2019s president Serdar Berdymukhamedov signed a virtual-assets law that permits<\/a> mining and crypto exchanges. It takes effect on January 1, 2026.<\/p>\n
- Cipher Mining entered into a lease with Amazon Web Services (AWS) worth $5.5bn<\/a> to support AI computing;<\/li>\n
- TeraWulf signed<\/a> a 10-year contract with cloud platform Fluidstack worth $3.7bn. Google acted as financial guarantor, becoming<\/a> the miner\u2019s largest shareholder;\u00a0\u00a0\u00a0<\/li>\n
- <\/li>\n<\/ul>\n
![\"image\"](\"https:\/\/forklog.com\/wp-content\/uploads\/img-62f547155dc891b6-1361150915556811.webp\")