Author: Kyrian Alex, CoinTelegraph; Translated by: Tao Zhu, Jinse Finance
After the halving in 2024, Bitcoin mining entered its fifth era, with block rewards dropping from 6.25 BTC to 3.125 BTC. This forced miners to rethink their operations, optimize efficiency, reduce energy costs, and upgrade hardware to remain profitable. Cointelegraph Research explores this transition in its latest report. The analysis covers improvements in ASIC efficiency, corporate performance, geographical expansion, and new revenue models. As miners adapt, Bitcoin will enter a new era, where institutional momentum and sovereign adoption may redefine its role in the global financial system.
How the mining industry responds to rising hash rates and declining profit margins
Despite the adverse financial impacts of the halving, the hash rate of the Bitcoin network continues to rise. As of May 1, 2025, the total network computing power reached 831 EH/s. Earlier this month, the hash rate peaked at 921 EH/s, a 77% increase from the low of 519 EH/s in 2024. This rapid recovery highlights the industry's relentless pursuit of efficiency, with large mining companies reinvesting in miner upgrades and energy optimization to maintain profitability.
The arms race in mining has always revolved around energy efficiency. With rising energy costs, the latest ASIC miners from Bitmain, Bitfury, and Canaan Creative are further optimizing the energy required per unit of hash power. Bitmain's Antminer S21+ miner offers 216 TH/s of computing power with a power consumption of 16.5 J/TH, while Bitfury's WhatsMiner M66S+ miner enhances immersion cooling performance to 17 J/TH. Meanwhile, semiconductor giants TSMC and Samsung are driving the next wave of innovation, with 3-nanometer chips already in use and 2-nanometer technology on the horizon.
Profitability after the halving: A global shift towards low-cost energy
After the halving, the profitability of Bitcoin mining has significantly decreased. The price of computing power (daily earnings per terahash/second) dropped from $0.12 in April 2024 to approximately $0.049 in April 2025. Meanwhile, the network difficulty soared to a historical high of 123 terahashes, making it even harder for miners to improve profitability. To remain competitive, operations must maximize every watt of power. This shift has intensified the pursuit of cheap and reliable electricity, driving mining operations to expand into regions with lower energy costs.
Today, electricity prices determine the profitability of mining. In Oman, licensed miners benefit from government subsidies, with electricity prices ranging from $0.05 to $0.07 per kilowatt-hour; while in the UAE, semi-government projects have even lower electricity prices, only $0.035 to $0.045 per kilowatt-hour. These incentives have made the region a preferred destination for institutional-scale mining. Meanwhile, in the United States, industrial electricity costs typically exceed $0.1 per kilowatt-hour, forcing miners to migrate to more cost-effective areas. Africa, the Middle East, and Central Asia have become key battlegrounds in this race, providing miners with energy arbitrage opportunities necessary for survival.
How will the future of Bitcoin mining develop?
The halving in 2024 reinforced a brutal reality: efficiency is no longer optional but a necessity. The entire industry is shifting towards leaner, more optimized operational models, where only the most energy-efficient miners can thrive. The rise of AI computing, changes in global regulation, and ongoing hardware advancements will continue to shape the development of the industry in the next 12-18 months.
