Bitcoin mining is currently grappling with worsening profitability and an imbalanced revenue structure. According to BIT Research, miners' real income at current bitcoin prices significantly underperforms theoretical estimates. The high proportion of electricity costs has pushed the breakeven price to $65,000, meaning that if bitcoin falls below this level, most miners would operate at a loss.
2028 Halving Will Accelerate Industry Consolidation
Bitcoin's quadrennial block reward halving is the largest cyclical shock for the mining industry. The upcoming 2028 halving will further slash miners' revenue, forcing inefficient miners with poor cost management to exit. This is not the end but the beginning of a real shakeout. The era of simple mining profitability dependent on high coin prices is waning.
Business Model Upgrade: From Mining to Infrastructure Services
Confronted with stagnant revenue growth, mining companies are accelerating transformation. One direction is pivoting from pure mining to energy management, leveraging mining site power resources for grid demand response. Another is deploying AI/HPC high-performance compute hosting services, repurposing idle ASICs or new GPU clusters for AI training and rendering. This business model upgrade will be critical for competitiveness in the next phase.
In summary, Bitcoin mining is undergoing a structural transformation. The 2028 halving will act as a catalyst, pushing the industry from a cyclical, capital-intensive sector toward a diversified technology infrastructure service provider. The ability of mining firms to successfully transition will determine their survival and growth in the next bull-bear cycle.