Bitcoin News Today: Energy, Not Code, Now Drives Bitcoin's Survival Race

Bitcoin mining operations are increasingly challenged as rising power costs erode profitability, compelling firms to pivot toward diversification and innovative energy strategies to sustain operations. The traditional four-year halving cycle—once a central feature of the industry—has diminished in relevance as institutional demand, AI infrastructure, and power availability reshape the competitive landscape. As the hash rate climbs, miners are facing tighter margins, and access to low-cost energy has become a decisive factor in their survival.

For companies like Cleanspark, IREN, Marathon, and Terawulf, the shift is evident in their strategic moves. Cleanspark, which now controls 800 megawatts of energy infrastructure and has another 1.2 gigawatts in development, has expanded its focus beyond proof-of-work to explore power monetization through AI and data center services. “Our speed to market with electricity has created opportunities to diversify revenue streams,” said Matt Schultz, CEO of Cleanspark. Similarly, IREN, a major player in the sector, reported operating at 50 exahash and maintaining a 65% EBITDA margin. Kent Draper, chief commercial officer at IREN, emphasized the company’s focus on low-cost power and operational efficiency as the cornerstone of its profitability.

Terawulf, however, has faced the brutal economics of mining head-on. CFO Patrick Fleury revealed that at current electricity prices, it costs around $60,000 to mine a single bitcoin when electricity is priced at five cents per kilowatt-hour. With bitcoin trading at $115,000, half of the revenue is consumed by power alone. Fleury acknowledged that profitability hinges on securing ultra-low-cost energy, which has become increasingly scarce due to the global expansion of the hash rate. Bitmain, a leading mining hardware manufacturer, continues to flood the network with hash power, tightening margins for other miners. To counteract this, Terawulf has entered a $6.7 billion lease-backed deal with Google to convert mining infrastructure into data center space, leveraging the company’s backstop lease support to secure financing at lower rates.

Marathon Digital’s CFO, Salman Khan, echoed the need for agility in a market that mirrors cycles seen in traditional commodity sectors. Khan emphasized Marathon’s strategic decision to hold bitcoin on its balance sheet, offering a hedge against price volatility. Recently, the company announced a majority stake in Exaion, a move to explore compute-on-the-edge solutions. “We see recurring revenue potential and a software and platform angle that could differentiate us,” he noted. Despite these initiatives, the industry remains anchored to energy costs. As Fleury, Draper, and others noted, bitcoin mining is fundamentally an energy business, whether the power is used for mining, AI, or grid stabilization.

Bitcoin liquid staking is also gaining traction as an alternative use case for the asset. Projects like Lombard Finance are creating liquid staking tokens (LSTs) that allow users to stake their bitcoin and earn yield while maintaining liquidity. Lombard’s LBTC token, which is backed 1:1 by bitcoin, has become a focal point for DeFi integration. With a market capitalization of around $1.4 billion, it represents 40% of the bitcoin LST sector. Lombard recently launched the Liquid Bitcoin Foundation and its native $BARD token, aiming to foster community governance and expand bitcoin’s role in decentralized capital markets.

As miners and developers navigate these evolving dynamics, the broader industry faces a critical juncture. Bitcoin’s role as a digital store of value is increasingly complemented by its potential as a productive asset in decentralized finance and infrastructure. However, the path forward will depend on continued innovation, access to energy, and the ability to adapt to a market where margins are tightening and competition is intensifying.

Source: [1] Bitcoin Mining Faces 'Incredibly Difficult' Market as Power ... (https://www.coindesk.com/tech/2025/08/24/bitcoin-mining-faces-incredibly-difficult-market-as-power-becomes-the-real-currency) [2] Modeling bitcoin network energy demand: Price-adjusted ... (https://www.sciencedirect.com/science/article/abs/pii/S0960077925010884) [3] HIVE Digital Technologies Crosses 16 EH/s, Marching Toward 25 EH/s as Expansion in Paraguay Powers Forward (https://www.hivedigitaltechnologies.com/news/hive-digital-technologies-crosses-16-ehs-marching-toward-25-ehs/) [4] Bitcoin Liquid Staking Gains Momentum as Lombard ... (https://finance.yahoo.com/news/bitcoin-liquid-staking-gains-momentum-140000328.html)