Current Mining Dilemma: Hashrate at Record Highs but Profitability Under Pressure
The Bitcoin mining industry is undergoing one of the most complex structural adjustments since the protocol's inception. Although Bitcoin's price remains around $61,000 and the network's hashrate is near 1 ZH/s (close to all-time highs), miners' profitability continues to deteriorate. Multiple indicators—production costs, fee revenue, hashrate expansion, and industry security budget—all suggest that mining is currently operating near the breakeven edge, and the 2028 halving could accelerate the market cleanup.
Looking at the revenue structure: at the current Bitcoin price of about $61,000, the theoretical daily revenue for all miners should be around $78 million, but actual daily revenue is only about $33 million—a gap of roughly 136%. At the same time, the network hashrate is close to 1 ZH/s, yet fee income remains depressed at only about $0.22 million per day, far below the ~$9.7 million implied by historical relationships. As the halving continues to compress new issuance, the Bitcoin mining industry faces mounting profitability pressure.
Cost-Side Squeeze: Electricity and Hardware Expenditure Eroding Profits
In addition to declining revenue, miners' cost pressure is also rising. According to BIT Research data, total Bitcoin miner revenue in 2025 was approximately $17.2 billion, of which electricity costs alone were about $12.3 billion, accounting for 71.5% of total revenue. Global mining hardware investment stood at roughly $4.5 billion. Combined calculations show that the industry-wide breakeven price is currently around $65,000, meaning that at the current price level, relying solely on mining operations can no longer sustain ideal profit levels.
Meanwhile, the industry's revenue structure has yet to complete the transition to a fee-driven model. An increasing number of mining companies are shifting from being pure Bitcoin producers to operators of infrastructure, energy, and AI/HPC compute capacity. The focus of mining competition is gradually moving from hashrate expansion to business model upgrades.
2028 Halving Outlook: Rising Production Cost Floor and Industry Concentration
It is estimated that after the 2028 halving, the lower bound of Bitcoin production cost will further rise to approximately $93,289. The industry will accelerate toward concentration among a few large, well-capitalized miners with diversified revenue sources. Compared to traditional miners that rely on block rewards, institutionalized mining companies with access to low-cost electricity, AI/HPC hosting businesses, and stronger balance sheets are likely to gain a stronger competitive advantage in the next cycle.
The above data and analysis come from the BIT on Target research report. Overall, the Bitcoin mining industry is at an inflection point, transitioning from a 'hashrate race' to a 'comprehensive infrastructure' model, and the 2028 halving could serve as the catalyst for a genuine shakeout.
