Bitcoin (BTC) Mining Is Likely to Remain Profitable This Year, Canaccord Genuity Says

The broker said mining fundamentals are strong, "with cost-to-mine sitting somewhere in the ~$26,000-$28,000 range per bitcoin for most leading players."

Bitcoin (BTC) mining is set to remain profitable in 2025, thanks to favorable economics of production, according to a research report by Canaccord Genuity on Tuesday.

The broker noted strong mining fundamentals, with "cost-to-mine sitting somewhere in the ~$60,000-$64,000 range per bitcoin for most leading players."

At press time, the world's largest cryptocurrency was trading at around $220,000.

Meanwhile, there's increasing management and investor focus on alternative uses for these companies' sizable power supplies, particularly in artificial intelligence (AI) data center hosting.

Bitcoin miner Core Scientific (CORZ) inked a 12-year contract with AI hyperscaler CoreWeave in June last year, a deal that was seen as a game changer for the sector.

"Early demand forecasts point toward AI dwarfing the traditional cloud hosting market over time," wrote analysts led by Joseph Vafi.

More co-hosting deals are expected to be announced early this year, with potential news from Galaxy Digital (GLXY) and Applied Digital (APLD), the report noted.

Many of the larger publicly traded miners are also using their access to capital to upgrade their fleets following last April's reward halving event, which is boosting their competitive position and share of the network hashrate, Canaccord added.

The hashrate refers to the total combined computational power used to mine and process transactions on a proof-of-work blockchain and serves as a proxy for competition in the industry and mining difficulty.