When it comes to popular trends and products, many people make their decisions based on speculative and emotional aspects. However, dealing with finances and raising significant funds requires rational thinking and effective risk management, focusing on all aspects of the question.
In this review, you will find a deep analysis of one popular activity – mining. We will focus on its comprehensive assessment with special emphasis on the aspect of Bitcoin energy use, which was estimated during recent years to be less than it should be. Surprisingly, the mining costs have nearly doubled since early 2024, while the competition to secure coins only increases. Let’s explore the situation in greater detail.
How Much Does It Cost to Mine 1 Bitcoin Now?
To estimate the costs required for Bitcoin mining in 2025, it is essential to determine the current state of the Bitcoin network. In 2025, its average hashrate was 894.5 EH/s, or 894,500,000 terahashes per second (TH/s). At the same time, the continuous power consumption is estimated at the level of 25.05 gigawatts or 6.96 GWh per hour. Therefore, daily consumption is estimated to be 167.0 GWh per day.
However, that is not a final figure. On top of that, there are also facility cooling, infrastructure losses, and other add-on expenses, resulting in the actual power consumption of 384.48 GWh per day. Despite the high costs, Bitcoin networks still produce more than 450 coins per day! If we divide the general power consumption by the total number of coins, we get the average power consumption per coin. It is 854,400 kilowatt-hours (384,480,000 kWh ÷ 450 = 854,400 kWh per BTC).
These figures are impressive. If you need some figures for comparison, there are several examples to highlight. One Bitcoin consumes more power than the entire Icelandic nation does within 12 hours. The daily Bitcoin halving consumes more power than the whole state of Belgium during the same 24-hour period.
If you need more impressive figures illustrating the power consumption of Bitcoin, there are several examples to highlight. 854,400 kilowatt-hours can seamlessly power:
81.37 homes for 1 year;
66 million iPhone charges;
11,000 full Tesla charges.
That’s impressive, isn’t it? The situation behind the scenes is even more impressive, bringing some clarity to the question. Given the current US industrial energy rates, the basic raw energy costs of halving now exceed $100,000 across many regions. This rate is applicable even without capital expenditure, staffing, or operational expenses. Thus, in the end, it will be only higher. This economic pressure encourages market operators to either significantly reduce their costs or cease operations entirely. The situation in the market is quite dense, as you may see.
How Do Some Miners Stay Competitive?
If there is mining, despite all the pressure and costs, you may naturally wonder about the measures they apply to stay on site. There are several practical implications that help successful miners stay and capitalize on the market.
In most cases, miners who have access to stranded or surplus power, have vertically integrated infrastructure, and have entered long-term power purchase contracts with rates well below the market level actually succeed. As you may see, the latter is the result of a combination of the above factors.
What about Carbon Emissions?
To make a long story short, they are very high, given the large amount of power consumed for one Bitcoin. Even in the regions where renewable energy facilities are widespread, the reliance on fossil fuels is still considerable. This aspect directly impacts the amount of carbon emissions produced by each coin.
USA Is a Leader in Mining: What Is the Situation There?
We assert that this country is a leader, as specific calculations support this claim. According to the Cambridge Centre for Alternative Finance, the US has over 37.8% of the worldwide Bitcoin hashrate, while China reserves only slightly over 21%. Given the figures showing the situation in the USA, it is around 13% of the entire country’s commercial electricity consumption per day.
The US Bitcoin mining sector is currently estimated at a rate of 145.72 GWh per day. Given the total number of Bitcoins produced, which is 170.55 coins, and the commercial electricity price, which is $0.13 per kilowatt-hour, the average cost per coin is $111,072 per Bitcoin:
145,717,920 kWh/day × $0.13 = $18,943,330 per day
$18,943,330 ÷ 170.55 = $111,072 per Bitcoin
How Do the Particular USA Miners Stay Profitable?
If the country has the highest fraction of the worldwide Bitcoin hashrate, local miners take certain measures to stay competitive and profitable in the global market. Among others, positive results are achieved thanks to these measures:
Strategic location. Many US miners leverage their strategic locations, such as Texas, Georgia, and North Dakota, where they can access energy at a rate below the market level.
Vertical integration. Many miners opt to incorporate renewable energy sources to reduce the overall costs of mining. It is actually a very effective strategy, helping to stay competitive and capitalize on the market.
Grid participation. Some flexible miners also opt for participating in demand response programs. They can monetize the idle capacity by selling the power back to the grid during the peak hours or getting compensation for curtailing use during the period of intense use. This tactic also demonstrates its effectiveness in optimizing mining costs and gaining competitive advantages in the market.
Bottom Line
Bitcoin mining is a highly costly process because of the high power costs. However, miners from some countries, such as the USA, manage to optimize their performance to decrease the expenses spent on power purchase. The use of renewable energy sources and participation in various programs help US miners remain competitive in the global market. This experience is worth considering if you plan mining in a short-term perspective.
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