Canaccord predicts Bitcoin mining will be stable and profitable in 2025
Bitcoin mining profitability holds steady with production costs at $27,000 per coin
Bitcoin mining is expected to stay profitable in 2025, with production costs ranging between $26,000 and $28,000 per Bitcoin for leading miners.
Rising interest in AI hosting partnerships could further diversify miners’ revenue streams, according to a Canaccord Genuity report.
Key Takeaways
- Strong Fundamentals: Production costs for major miners are estimated at $26,000–$28,000 per Bitcoin, ensuring profitability at Bitcoin’s current price of $105,000.
- AI Hosting Partnerships: Bitcoin miners, including Core Scientific, are exploring AI co-hosting deals to leverage their power infrastructure.
- Fleet Upgrades: Miners are upgrading their fleets post-reward halving, enhancing their competitiveness and hashrate share.
- Growing AI Demand: Analysts predict AI hosting could surpass traditional cloud markets, opening new revenue opportunities for miners.
Bitcoin mining profitability remains strong
Bitcoin mining economics are stable as production costs for major players sit around $27,000 per Bitcoin, well below the cryptocurrency’s trading price of $105,000. Canaccord Genuity notes that this profitability is supported by strong fundamentals, with miners leveraging economies of scale to maintain low costs.
BTC price dynamics (2022-2025). Source: Statista.com
AI partnerships: a new frontier for miners
Miners are increasingly turning to artificial intelligence data center hosting to diversify revenue streams. Core Scientific’s 12-year contract with AI hyperscaler CoreWeave, signed last June, has set a precedent for similar deals. Analysts expect announcements from Galaxy Digital and Applied Digital early this year, as AI hosting demand continues to rise.
“Early demand forecasts point toward AI dwarfing the traditional cloud hosting market over time,” Canaccord analysts wrote.
Upgrades boost competitiveness
Publicly traded miners are capitalizing on access to capital to upgrade their fleets after last April’s reward halving. These upgrades have bolstered their share of the network hashrate, a key metric reflecting mining competition and difficulty.
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Recently we wrote, that Bitcoin is trading at $105,500 in today’s early European session, just 3.7% shy of its all-time high of $109,400.
