Bitcoin Miners Pivot to In-House Power to Outpace a Shifting Industry

In August 2025, the public Bitcoin mining industry witnessed significant growth in hashrate contributions from three key players—HIVE, Bitdeer, and Cipher—as the broader network crossed the 1 zetahash (ZH/s) threshold on a seven-day moving average basis. This milestone underscores the continued expansion of the Bitcoin network despite ongoing challenges such as low transaction fees and competition from other technology sectors, including artificial intelligence and high-performance computing.

HIVE, which operates in Paraguay, completed Phase 2 of its Yguazú Project, bringing its total hashrate to 18 EH/s. The company's strategic expansion in a region with low-cost, renewable energy has positioned it as a key player in the global mining landscape. This development is particularly relevant given the growing trend among manufacturers to deploy surplus inventory in-house rather than shipping it to third-party operators.

Bitdeer, the Singapore-based mining operator, demonstrated one of the most aggressive internal deployment strategies. The company increased its proprietary hashrate from 8.9 EH/s in December 2024 to 22.5 EH/s by July 2025, largely through the activation of its own SEALMINER equipment. Bitdeer's efforts reflect a broader industry shift where operators are leveraging their own hardware to drive hashrate growth, rather than relying on external sales to sustain expansion. If Bitdeer meets its target of 30 to 40 EH/s by year-end, it could surpass several major public mining firms, including Riot Platforms.

Meanwhile, Cipher, while not explicitly mentioned in numerical terms, is expected to have contributed to the sector’s momentum through continued operational optimization and strategic deployment of computing power. The combined efforts of these three companies highlight how the industry is adapting to a new phase of the cyclical arms race, where manufacturers and operators are aligning more closely to manage excess hardware and maintain network growth.

From a macroeconomic perspective, the shift in production dynamics has led to a reallocation of capital within the industry. Previously, public mining firms prioritized hardware purchases to outpace competitors in hashrate expansion. However, in the current environment, with hashprice under pressure and demand for AI infrastructure rising, operators are focusing on optimizing existing assets and exploring alternative revenue streams. This trend is also evident in the actions of major manufacturers such as Bitmain, which has pivoted toward hosting services for new clients like Ruihe Data.

The broader implications of this shift suggest a more sustainable and capital-efficient model for Bitcoin mining. By deploying their own equipment, companies like HIVE, Bitdeer, and Cipher are not only increasing their control over operational efficiency but also reducing reliance on external market conditions to drive growth. As the industry continues to evolve, it remains to be seen whether these strategies will lead to a more stable and resilient network in the long term.