Opinion: Fakhul Miah, managing director of the Gomining Institutional
The Bitcoin (BTC) mining industry has never been more attractive for institutional investors. FINTECH giants invest in Bitcoin extraction, and not only accumulate assets, all thanks to the favorable regulatory environment in the USA and the BTC profitability margin.
Then many companies diversify themselves, assigning computing power to AI, additionally strengthening their economics, and thus investment attractiveness. For now, it seems that the future of the fundamental layer of the Bitcoin network can mean the modern Gusher age.
Is Bitcoin mining profitable?
Mining Bitcoin is still profitable. Coinshares, a digital investment company of assets, shared that the average cost of mining 1 btc for miners listed on the US list reached 55,950 USD in Q3 2024. Two other popular models-one of Macromicro, and the other called the Glasnode difficulty regression model-various estimates.
On the same on February 20, macromicro.me data shows that the average cost of producing 1 BTC lifts over USD 92,000; The Glassnode difficulty regression model estimates the cost of bringing out a single BTC for around $ 34,400, while the cryptocurrency price has reached USD 98,300 on that day.
On a global scale, extraction costs vary depending on the region. For example, the cost of electricity production of 1 BTC in Ireland is around USD 321,000, but the extraction of 1 BTC costs just over 1300 USD. Electricity is only part of the equation – the costs of equipment, labor and maintenance also play a key role.
Recent data from Coinshares and Macromicro.ME paint a hard but refined image for Bitcoin miners in the United States. While some institutional miners remain profitable, a wider landscape reveals the growing operational pressure that could change the mining industry.
What happens if the challenge is not resolved? Mining institutions with high profitability rates can begin to expand their activities and probably acquire fighting miners at bargain prices, potentially exposing retail and smaller miners.
Sustainable economy for the attractiveness of investments
In addition to receiving block prizes, miners also operate the Bitcoin network transaction fees that depend on the operate of the network. Data shows that daily Bitcoin transaction fees ranged between 360,000 to USD 1.3 million over the past month – reaching an average of USD 595,000 per day.
This additional revenue stream strengthens Bitcoin Mining’s economic appeal and strengthens the resistance of the mining business model by diversifying income sources.
Last: Bitcoin Miner Bitfarms secures a loan up to USD 300 million from Macquarie
This is not only extraction for which mining equipment is used. High computing power supply, capture in captivity and ready infrastructure make miners extremely equipped for AI and calculated high -performance calculations. Simply put, mining companies can now rent their equipment to process AI tasks, instead of focusing only on mining bitcoins.
The combination of increased revenues of transaction fees and diversification of artificial intelligence calculations creates a more resistant and profitable industry model (the existing one has never been very attractive for US institutional investments).
Institutional investments are growing
Attractive revenues in the Bitcoin mining industries caught the great attention of institutional investors. This process is effortless to notice: Bitcoin mining pools in the USA constituted over 40% of the global Bitcoin Network network in 2024.
According to tests By EY-Parthenon and Coinbase, 83% of 352 global institutions plan to boost their cryptographic allocations this year, while 51% of asset managers are considering investing in digital assets companies, including mining companies. That is why I am not surprised that they testify to huge investments on the riot platform, Coreweave and other players from the mining industry.
Favorable market moods paved the path of a more initial public offer (IPO) and specialized funds addressed to mining companies. In addition to securing the investment in the amount of $ 650 million, Coreweave intends to make public $ 4 billion to lend a hand the company supported by NVIDIA achieving a valuation of $ 35 billion.
Bin Blockchain, a producer of cryptocurrencies from Singapore, recently submitted an application for an audience in the USA. Renaissance Capital, an investment advisory company, expects bin blockchain $ 50 million on its IPO.
This boost in institutional momentum will benefit the Bitcoin mining industry, increasing the demand and tightening of available supply supply on the market. Because more and larger players are gathering and holding bitcoins, market deficiency may boost by supporting higher prices, and thus boost the profitability of Górnik.
The future optimism is more than material
Sturdy support for institutional investors comes when the optimism around the affable cryptocurrency policy increased significantly after Donald Trump won the presidential election in the US in November 2024.
The establishment of the Bitcoin strategic reserve at the beginning of March, perceived as a huge change in politics, caused positivity in cryptographic and mining sectors. This sector has gained importance. Last year, Bitcoin mining operations significantly contributed to the US economy, generating about $ 4.1 billion in gross domestic product and creating over 31,000 jobs throughout the country. The industry also revitalizes rural areas by generating tax revenues and re -use of distant locations for mining activities. Sounds like Gusher Oil Industry Days a hundred years ago, right?
The latest investments, leadership meetings and IPO show that Bitcoin mining companies have a significant wind. Meanwhile, they are no longer just BTC – they become providers of data infrastructure for the AI sector, turning into hybrid data processing giants.
By using this change, the US could potentially become a leader in the digital mining space of assets and bitcoins due to the decision of the Trump administration and fulfill its goal, which is to be “the cryptographic capital of the world”.
Because the institutions doubled Bitcoin mining and the convergence of AI, the question is not the question of whether this industry is evolving, but who will pay the fee. A current digital gold fever is underway, and the smartest capital already claims it.
Opinion: Fakhul Miah, managing director of the Gomining Institutional.
This article is used for general information purposes and should not be and should not be treated as legal or investment advice. The views, thoughts and opinions expressed here are themselves and do not necessarily reflect or represent the views and opinions of Cointelegraph.
