Bitcoin Mining Costs Surge 34.6% to $70,000 in Q2 2025

Bitcoin mining costs have surged past $70,000 in the second quarter of 2025, driven by rising energy prices and an intensifying network hashrate. This increase in production costs, which have climbed from $52,000 in late 2024 to $64,000 in the first quarter of 2025, poses a significant challenge for mining firms. The near 9.4% increase in production costs threatens to erode profitability for less efficient miners, even as Bitcoin trades above $107,500. The steep rise comes amid a growing divergence between mining companies, with investors rewarding firms that have expanded their revenue streams beyond traditional Bitcoin mining.

Despite the cost pressure, the continued strength in Bitcoin’s price is providing a cushion for most miners. With Bitcoin currently trading near $107,635, many miners still retain healthy profit margins — at least for now. But the margin for error is narrowing, particularly for companies operating with aging hardware, higher-cost energy contracts, or limited operational scale. One of the key drivers behind the rising cost of Bitcoin mining is the increase in energy prices, which directly impacts the fleet hashcost — the amount miners pay for computing power.

In the first quarter of 2025, the median fleet hashcost for public mining firms held at $34 per petahash per second (PH/s), but some companies experienced significantly steeper increases. Terawulf, for instance, reported a 25% rise in production costs due to energy expenses spiking to $0.081 per kilowatt-hour — nearly double its Q1 2024 rate of $0.041. Similarly, Bitdeer and other firms have reported similar cost inflation, sparking renewed focus on operational efficiency, energy sourcing strategies, and hardware upgrades. For many mining companies, keeping fleet costs low has become a critical priority as the industry enters a higher-cost operating environment.

The impact of rising mining costs is being felt not only in data centers but also in the stock market. Mining equities have shown diverging performance, with investors showing a clear preference for companies that have diversified beyond Bitcoin block rewards. Between May 4 and June 13, while Bitcoin rose a modest 1.35%, shares of Iris Energy (IREN) soared by 21.4%. Other top performers include Core Scientific (CORZ), Bit Digital (BTBT), and Cipher Mining (CIFR), all of which posted double-digit gains. In contrast, hardware-focused and less diversified firms like Canaan (CAN) and Bitfarms (BITF) each saw their stock prices drop by over 21% in the same period.

The pursuit of new revenue streams is leading many miners into adjacent industries such as artificial intelligence (AI) hosting and high-performance computing (HPC) services. These ventures offer miners a way to repurpose or dual-purpose their infrastructure — particularly data centers and energy supply contracts — to serve enterprise-grade computing needs. By offering AI training environments, machine learning compute cycles, and even cloud-based services, some Bitcoin miners are transforming themselves into diversified tech infrastructure providers. This pivot is not without its challenges, but for now, it’s winning favor with shareholders eager for stability in an otherwise volatile sector.

In related news, Swedish health-technology company H100 Group has announced a landmark financing agreement with Blockstream CEO Adam Back that could bring in up to 750 million Swedish kronor (approximately $79 million) to support the firm’s expanding Bitcoin treasury strategy. The agreement marks a significant milestone in the convergence of healthcare innovation and Bitcoin adoption, as H100 accelerates its plans to solidify BTC as a strategic reserve asset. As part of the agreement, Back has already committed to an initial 150 million-krona investment in what the company has designated as Tranche 6, a convertible loan structured to convert into equity at a future date. The terms were established through arm’s length negotiations, with the tranche priced at 6.38 kronor per share — a 33% premium over H100’s current market value.

In addition to Tranche 6, Back retains the option to participate in two follow-up tranches, each currently set at 75 million kronor. However, the company signaled it may increase the size of these tranches depending on evolving market conditions. The move aligns with H100’s long-term strategy of integrating Bitcoin into its corporate treasury — a decision that reflects growing institutional confidence in the digital asset’s role as a store of value. As of now, H100 holds 24.41 BTC, and the company appears committed to significantly expanding that figure in the near term. This strategy mirrors a broader trend among forward-looking companies that view Bitcoin not only as a hedge against inflation and fiat currency depreciation, but also as a technological signal to markets about innovation readiness and balance sheet strength.

H100’s announcement sparked a sharp rise in investor interest. Shares of H100 jumped 22% on Monday, fueled by both the capital infusion and the prestige of partnering with one of Bitcoin’s most respected figures. Adam Back, a legendary cryptographer and an early contributor to Bitcoin’s development, is best known for inventing Hashcash, the proof-of-work system that laid the groundwork for Bitcoin’s consensus algorithm. His role as CEO of Blockstream, a leading Bitcoin infrastructure firm, adds significant weight to his financial endorsement.

While companies like Strategy and Metaplanet have made headlines for massive Bitcoin treasury allocations, H100’s entry into this arena is notable for a few reasons. As a health-technology company, H100’s Bitcoin strategy introduces BTC into an industry that has traditionally shied away from crypto exposure. The convertible loan structure offers speed and scalability, contrasting with slower and more rigid equity-raising mechanisms like rights issues. With Adam Back’s participation, the deal not only brings capital but also validation from one of the Bitcoin industry’s most influential voices. The firm’s proactive stance may inspire other European technology and healthcare companies to explore similar strategies, especially under the increasingly favorable regulatory frameworks emerging across the continent.

H100’s financing deal and its growing BTC holdings highlight a broader narrative: Bitcoin’s transition from speculative asset to corporate reserve is no longer confined to tech or financial firms. As energy costs, inflation concerns, and fiat volatility continue to impact global markets, more companies are exploring the strategic potential of Bitcoin on their balance sheets. And with heavyweight figures like Adam Back backing innovative entrants, the momentum shows no signs of slowing. For H100, this financing round may just be the beginning of a much larger transformation — one that not only reshapes its treasury but positions it at the forefront of a new economic paradigm in corporate finance.