Bitcoin Mining Survival Threshold: How Miners are Adapting to a 35% Profit Plunge
Original Title: The Miners's Mirage
Original Author: Prathik Desai, Token Dispatch
Original Translation: Chopper, ForesightNews
The financial logic of Bitcoin miners is quite simple: they rely on a fixed protocol reward for their survival but have to deal with fluctuating real-world expenses. When the market is volatile, they are the first to feel the pressure on their balance sheets. Miners' revenue comes from selling the mined Bitcoins, while the operational costs mainly consist of electricity for running the heavy-duty computers for mining.
This week, I tracked some key data of Bitcoin miners: the network's reward to miners, the cost of earning this income, the remaining profit after deducting cash expenses, and the final net profit after accounting.
At the current Bitcoin price below $90,000, miners are in distress. Over the past two months, the 7-day average miner revenue has dropped by 35% from $60 million to $40 million.

Let me break down the key logic in detail.
Bitcoin's revenue mechanism is fixed and coded into the protocol. The mining reward for each block is 3.125 Bitcoins, with an average block time of 10 minutes, producing approximately 144 blocks per day, equivalent to a daily total network mining output of about 450 Bitcoins. Calculated over 30 days, global Bitcoin miners collectively mine 13,500 Bitcoins, valued at about $1.2 billion at the current $88,000 Bitcoin price. However, if this income is distributed among the record 1078 EH/s (exahashes) of hash rate, the final income per TH/s (terahash) of hash rate per day is only 3.6 cents, supporting the entire economic foundation of this $1.7 trillion network security. (Note: 1 EH/s = 10^18 H/s; 1 TH/s = 10^12 H/s)
In terms of costs, electricity is the most critical variable, with its cost depending on the mining location and machine efficiency.
If modern mining machines of the S21 class are used (power consumption of 17 joules per terahash) and access to cheap electricity is available, miners can still achieve cash profitability. However, if the mining operation relies on older equipment or has to pay high electricity prices, each hash calculation will increase the cost. At the current hash price (influenced by network difficulty, Bitcoin price, block subsidy, and transaction fees), an S19 miner, if using electricity priced at $0.06 per kWh, can barely break even. Once the network difficulty increases, Bitcoin price slightly drops, or electricity prices surge, its economic viability will further deteriorate.
Let me analyze this with some specific data.
In December 2024, CoinShares estimated that the cash cost for a publicly listed mining company to mine 1 Bitcoin in the third quarter of 2024 was approximately $55,950. Today, the University of Cambridge's estimate has risen to around $58,500. The actual mining costs vary among different miners: Marathon Digital, the world's largest publicly listed Bitcoin mining company (ticker symbol MARA), has an average energy cost of $39,235 per Bitcoin mined in the third quarter of 2025; the second-largest listed mining company, Riot Blockchain (ticker symbol RIOT), has a cost of $46,324. Despite a 30% drop in the Bitcoin price from its peak to $86,000, these mining companies are still profitable. However, this is not the whole truth.
Miners also need to consider non-cash expenses, including depreciation, impairment, and stock option compensation, which collectively make mining a capital-intensive industry. Once these costs are taken into account, the total cost of mining 1 Bitcoin can easily exceed $100,000.

Top Mining Companies Marathon and Riot's Mining Costs
MARA uses both self-owned mining machines and third-party hosted equipment for mining. MARA incurs electricity, depreciation, and hosting costs. A rough calculation shows that its total mining cost per Bitcoin exceeds $110,000. Even CoinShares' estimated total mining cost in December 2024 was approximately $106,000.
At first glance, the Bitcoin mining industry appears robust. The cash profit margin is high, accounting profitability is achievable, and the operating scale is large enough to easily raise funds. However, upon deeper analysis, you will understand why more and more miners are choosing to hold the mined Bitcoins, or even accumulate more Bitcoins from the market, rather than selling immediately.

Top Mining Companies' Bitcoin Reserves
Strong mining companies like MARA can cover their costs because they have ancillary businesses and access to the capital markets. However, many other mining companies may face losses as soon as the network difficulty increases again.
Overall, the mining industry has two coexisting profit and loss equilibrium scenarios:
The first is large-scale industrial miners, who have efficient mining machines, cheap electricity, and a strong balance sheet. For them, the daily cash flow turns negative only when the Bitcoin price drops from $86,000 to $50,000. Currently, their cash profit per mined Bitcoin exceeds $40,000, but whether they can achieve accounting profitability at the current price level varies by miner.
The second is the rest of the mining community, who will struggle to maintain a profit and loss equilibrium once depreciation, impairment, and stock option expenses are taken into account.
Even with a conservative estimate of the total cost per Bitcoin ranging from $90,000 to $110,000, many miners have already fallen below the economic breakeven point. They continue mining because the cash cost has not been breached, but the accounting cost is exceeding the threshold. This may lead more miners to choose to hold Bitcoin rather than sell at current prices.
As long as the cash flow remains positive, miners will continue to mine. At a price level of $88,000, the entire system appears stable, but this is predicated on miners not selling Bitcoin. If the price of Bitcoin further drops or miners are forced to liquidate their holdings, they will approach the breakeven point.
Therefore, although a price crash will continue to impact retail and trading groups, it is currently less likely to hurt miners. However, if miners' financing channels become more restricted, the situation could deteriorate, leading to a breakdown of the growth flywheel, forcing miners to increase investment in ancillary businesses to sustain operations.
You may also like

Hyperliquid Whales Shift Strategies: BTC Longs Decline, ETH Shorts Dominate
Key Takeaways A significant reduction in Bitcoin long positions has been observed on Hyperliquid, with large holders decreasing…

Crypto Christmas Heist: Over $6 Million Lost, Trust Wallet Chrome Extension Wallet Hacked Analysis

Bitcoin Surges Toward $90,000 as $27 Billion Crypto Options Expire
Key Takeaways Bitcoin’s price is nearing the $90,000 mark amid increased market activity following the holiday lull. The…

Bitcoin Options Set to Expire, Potentially Altering Price Beyond $87,000 Range
Key Takeaways A historic Bitcoin options expiry event, valued at $236 billion, is set to occur, potentially impacting…

Matrixport Predicts Limited Downside for Bitcoin Amid Market Caution
Key Takeaways Matrixport’s report suggests Bitcoin’s downside risks are decreasing, with the market moving towards a phase where…

Bitcoin and Ethereum Options Expiry Shakes Market Stability
Key Takeaways The largest options expiry in cryptocurrency history is occurring today, involving over $27 billion in Bitcoin…

Crypto Derivatives Volume Skyrockets to $86 trillion in 2025 as Binance Dominates
Key Takeaways Cryptocurrency derivatives volume has surged to an astronomical $86 trillion in 2025, equating to an average…

Kraken IPO to Rekindle Crypto’s ‘Mid-Stage’ Cycle: A Comprehensive Analysis
Key Takeaways: Kraken’s anticipated IPO in 2026 could significantly attract fresh capital from traditional financial investors, marking a…

Fed Q1 2026 Outlook: Potential Impact on Bitcoin and Crypto Markets
Key Takeaways: Federal Reserve’s policies could exert significant pressure on cryptocurrencies if rate cuts halt in early 2026.…

Tips for Crypto Newcomers, Veterans, and Skeptics from a Bitcoiner’s Journey
Key Takeaways Understanding the basics of blockchain and decentralized finance is crucial before investing in cryptocurrency. Newcomers should…

Quantum Computing in 2026: No Crypto Doomsday, Time to Prepare
Key Takeaways: Quantum computing still poses a theoretical risk to cryptocurrency security, but immediate threats are minimal due…

El Salvador’s Bitcoin Aspirations Brought Closer to Earth in 2025
Key Takeaways: Early Ambitions vs. Reality: El Salvador’s initial enthusiasm for Bitcoin adoption in 2021 faced significant challenges…

Ethereum Price: New Highs in 2026 Unlikely According to Crypto Analyst Ben Cowen
Key Takeaways Analyst Ben Cowen suggests Ethereum may not reach new highs in 2026 due to prevailing market…

Blockchains Quietly Brace for Quantum Threat Amid Bitcoin Debate
Key Takeaways Cryptocurrency networks, especially altcoins, are enhancing security to prepare for potential quantum computing threats. Bitcoin faces…

Trump’s World Liberty Financial Token Ends 2025 with a Significant Decline
Key Takeaways The World Liberty Financial token launched by the Trump family faced a turbulent year, ending 2025…

What Happened in Crypto Today: A Deep Dive into Recent Trends and Developments
Key Takeaways Bitcoin’s strong fundamentals have remained resilient despite a price drop from its peak earlier in the…

Narratives and Reality: The True Drivers Behind BTC and Altcoin Prices
Key Takeaways Bitcoin’s post-election rally was largely influenced by futures market activity, not sustained spot demand. Spot Bitcoin…

Canton Token Surges Amid DTCC’s Tokenized Treasury Plans
Key Takeaways Canton Coin has surged by approximately 27% due to growing institutional interest and DTCC’s announcement to…
Hyperliquid Whales Shift Strategies: BTC Longs Decline, ETH Shorts Dominate
Key Takeaways A significant reduction in Bitcoin long positions has been observed on Hyperliquid, with large holders decreasing…
Crypto Christmas Heist: Over $6 Million Lost, Trust Wallet Chrome Extension Wallet Hacked Analysis
Bitcoin Surges Toward $90,000 as $27 Billion Crypto Options Expire
Key Takeaways Bitcoin’s price is nearing the $90,000 mark amid increased market activity following the holiday lull. The…
Bitcoin Options Set to Expire, Potentially Altering Price Beyond $87,000 Range
Key Takeaways A historic Bitcoin options expiry event, valued at $236 billion, is set to occur, potentially impacting…
Matrixport Predicts Limited Downside for Bitcoin Amid Market Caution
Key Takeaways Matrixport’s report suggests Bitcoin’s downside risks are decreasing, with the market moving towards a phase where…
Bitcoin and Ethereum Options Expiry Shakes Market Stability
Key Takeaways The largest options expiry in cryptocurrency history is occurring today, involving over $27 billion in Bitcoin…
Popular coins
Latest Crypto News
Customer Support:@weikecs
Business Cooperation:@weikecs
Quant Trading & MM:[email protected]
VIP Services:[email protected]