Bitcoin mining difficulty reaches new all-time high, production declines for most major miners.

Bitcoin mining production declined in September due to rising difficulty and energy costs. Large-scale miners like MARA maintained their lead, while smaller miners faced pressure from operational costs and technical volatility. Bitcoin's network difficulty reached a new all-time high, further tightening miners' profit margins.

Bitcoin mining production declined in September 2025, driven by escalating mining difficulty and energy costs. Despite the challenges, large-scale miners like MARA maintained their lead, while smaller miners faced mounting pressure from operational costs and technical volatility. The Bitcoin network's difficulty reached a new all-time high, further compressing miners' profit margins.

Hong Kong-based Bitcoin mining company Cango released its September 2025 production report, highlighting a 89.7% operational hash rate increase and a Bitcoin reserve exceeding 5,800 BTC Hong Kong-Based Bitcoin Mining Company Cango Releases September BTC Production Report! Here Are the Details^[1]. However, the company's success is tempered by the global trend of rising mining difficulty, which has reached an all-time high, signaling strong network security and growing miner competition Bitcoin Mining Difficulty Hits New All-Time High^[2]. This increased difficulty requires more computational power and energy, making mining operations more challenging and costly.

The rise in mining difficulty is a direct result of the sharp increase in Bitcoin's overall hash rate, indicating growing interest and investment in the Bitcoin ecosystem Bitcoin Mining Difficulty Hits New All-Time High^[2]. While this is positive for network security, it also means that smaller miners may struggle to remain profitable, as they may need to upgrade their systems or exit the market entirely. The competitive landscape is further exacerbated by New York's proposed tiered energy tax on bitcoin mining operations, which could make it unviable for some firms, especially those reliant on grid electricity New York Bill Proposes Tiered Tax on Bitcoin Mining Energy^[3].

The median cost of mining a single bitcoin surpassed $70,000 in Q2 2025, amid increasing mining difficulty and network hashrate New York Bill Proposes Tiered Tax on Bitcoin Mining Energy^[3]. This escalating cost is compounded by rising energy prices, which doubled the costs for miners like TeraWulf in Q1 2025, leading to a $61.4 million loss New York Bill Proposes Tiered Tax on Bitcoin Mining Energy^[3]. The proposed tax in New York State could significantly impact the competitive landscape for miners, potentially forcing some to relocate out of state or transition to renewable energy sources.

In summary, Bitcoin mining production declined in September 2025 due to rising mining difficulty and energy costs. Large-scale miners maintained their lead, but smaller miners faced significant pressure. The Bitcoin network's all-time high difficulty and New York's proposed energy tax further tighten miners' profit margins, signaling a challenging period ahead.