When 'mining giants' become 'loss kings', does the Bitcoin bull market feast become a deadly poison?


In Q2 2025, cryptocurrency mining company Cipher Mining shocked the market with a financial report—$44 million in revenue, but a net loss of $46 million, directly portraying the magical reality of 'the more you mine, the more you lose'. Even more astonishing is that this mining company holds $112 million worth of Bitcoins but chose not to cash out and stop losses when the token price was high. What industry dilemma hides behind this report of ice and fire?

Financial Report Explosion: Mining Costs Soar 34%, Equipment Depreciation Devours Profits
According to Deep Tide TechFlow, CIFR's core losses stem from three major cost black holes:

  1. Electricity Costs Devour Profits: Although the company has reduced the mining cost of each Bitcoin to $33,700 through its own wind farm, the global computing power surged by 82% in Q2 2025, leading to a unit revenue collapse to $0.049/TH, completely compressing profit margins.

  2. Equipment Depreciation Pressures: Although the new generation S221Pro model has an efficiency of 18.3J/TH, the 3-5 year equipment depreciation cycle has caused quarterly depreciation expenses to surge by 70%, directly consuming adjusted earnings of $30 million.

  3. The Cost of Strategic Expansion: To lay out its AI computing power business, CIFR spent $950 million issuing zero-coupon convertible bonds. Although the debt cost is low, it has led to a significant increase in short-term financial pressure.

Market Crash: Stock Prices Halved This Year, Analysts Debate 'Life and Death Game'
After the release of the financial report, CIFR's stock price fell to $2.65, a decline of 34.5% this year, with a market value evaporating to $965 million. However, institutional opinions are seriously divided:

  • JPMorgan Warns: 'Additional investment is needed for computing power expansion in 2025; cash flow may break!'

  • Rosenblatt Calls Bullish Against the Trend: 'HPC business valuation is not priced in by the market, target price $6.5!'

  • SoftBank Capital is secretly laying out: hedging through convertible bonds, suspected of bottom-fishing 300MW mining resources.

Industry Shockwave: The 'Ice Age' of Mining Companies in the Bitcoin Bull Market
CIFR's predicament reflects the fatal contradictions of the entire industry:

  • Bull Market in Token Prices ≠ Feast for Mining Companies: The average Bitcoin price in Q2 2025 is $62,000, but the computing power competition has pushed the mining cost line up to $70,000, continuously narrowing the profit margin for mining companies.

  • Transformation is Imminent: Competitors like CleanSpark are hedging risks through a 'mining machine + AI computing power' dual-track strategy, while CIFR, holding 112 million Bitcoins, is passive due to its 'holding for appreciation' strategy.

  • Policy Dividends Dwindling: Electricity price subsidies in Texas, USA, are declining, and low electricity price regions in the Middle East are becoming a new battleground for mining companies. The industry has entered an era where 'those who have energy will dominate the world'.

Life and Death Gamble: Is 112 million Bitcoins a 'lifeline' or a 'ticking time bomb'?
By the end of Q2, CIFR held 4,583 Bitcoins but did not sell a single one. This operation has sparked intense market debates:

  • Optimists believe: 'This is the ultimate bet on the BTC bull market; if the token price breaks $120,000, profits will reverse instantly!'

  • Pessimists warn: 'Cash and cash equivalents are only $109.5 million, but short-term debt has reached $194 million; a liquidity crisis is imminent!'

The 'Darwin Moment' in the Cold Winter of Mining
CIFR's financial report explosion tore off the glamorous facade of cryptocurrency mining companies—when the competition in computing power replaces token prices as the core variable, and when AI computing power replaces Bitcoin as the new battlefield, this industry is experiencing a more brutal elimination race than halving. Will it become the waves left behind on the beach or evolve into a 'mining machine + computing power + energy' tri-species? CIFR's 112 million Bitcoins may be the toughest chips in this life-and-death gamble.