$BTC
Is Bitcoin mining profitable?
Bitcoin mining remains profitable. CoinShares, a digital asset investment firm, shared that the average cost of mining 1 BTC for miners listed in the United States reached $55,950 in the third quarter of 2024. Two other popular models —one from MacroMicro and another called Glassnode Difficulty Regression Model— provide different estimates.
On the same day, February 20, data from MacroMicro.me shows that the average cost to produce 1 BTC is over $92,000; the Glassnode Difficulty Regression Model estimates that the cost to mine a single BTC is approximately $34,400, while the price of the cryptocurrency reached $98,300 that day.
Globally, mining costs vary by region. For example, the cost of electricity to produce 1 BTC in Ireland is approximately $321,000, but it costs just over $1,300 to mine 1 BTC in Iran. Electricity is just one part of the equation: hardware, labor, and maintenance costs also play a crucial role.
Recent data from CoinShares and MacroMicro paints a challenging but nuanced picture for Bitcoin miners in the United States. While some institutional miners remain profitable, the broader landscape reveals increasing operational pressures that could reshape the mining industry.
What happens if these challenges are not addressed? Mining institutions with high profitability rates may begin to expand their operations and possibly acquire distressed miners at bargain prices, which could endanger smaller and retail miners.
