22 January 2025
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Bitcoin Mining Remains Profitable with Costs Between $26,000-$28,000
Canaccord Genuity reports that Bitcoin mining is expected to remain profitable this year, with production costs between $26,000 and $28,000 per bitcoin. Bitcoin is trading around $105,000.
Key points include:
- Increasing interest in alternative uses for mining power, particularly AI data center hosting.
- Core Scientific signed a significant 12-year contract with CoreWeave for AI computing services.
- Analysts predict AI will surpass traditional cloud hosting demand over time.
- More co-hosting agreements are anticipated from Galaxy Digital and Applied Digital.
- Larger miners are upgrading their operations post-April's reward halving event, enhancing their competitive edge and share of the network hashrate.
The hashrate indicates the total computational power in Bitcoin mining, reflecting industry competition and mining difficulty.