Bitcoin (BTC) mining is likely to remain profitable this year with production economics remaining stable, Canaccord Genuity said in a research report on Tuesday.
The broker said the mining fundamentals are strong, “with the mining cost sitting somewhere in the range of ~$26,000-$28,000 per bitcoin for most leading players.”
The world’s largest cryptocurrency was trading around $105,000 at the time of this publication.
Management and investor attention is also increasingly turning toward alternative uses for these companies’ important energy supplies, especially hosting artificial intelligence (AI) data centers.
Bitcoin miner Core Scientific (CORZ) signed a 12-year deal with AI hyperscaler CoreWeave in June last year. The agreement was seen as a turning point for the sector.
“Initial demand forecasts point to AI dwarfing the traditional cloud hosting market over time,” wrote analysts led by Joseph Vafi.
More co-host deals are expected to be announced early this year, with possible news from Galaxy Digital (GLXY) and Applied Digital (APLD), according to the report.
Many of the largest publicly traded miners are using their access to capital to upgrade their fleets following last April’s reward halving event, and this is strengthening their competitive position and share of the hashrate. of the network, Canaccord said.
Hashrate refers to the total combined computing power used to mine and process transactions on a proof-of-work blockchain and is an indicator of industry competition and mining difficulty.
Read more: Bitcoin miners have started 2025 on solid footing, says JPMorgan