- Data show mining one Bitcoin can cost more than its market price in several countries, including the United States.
- Using national average electricity rates, mining in the U.S. now costs about $94,746 per Bitcoin; at industrial rates it costs about $86,931.
- Higher business energy rates push mining costs above $88,000 in China, Russia and Canada, while Paraguay remains a low-cost outlier at about $59,650.
- Some U.S. miners have shifted capacity toward AI data centers to offset mining pressure.
- Analysts warn miners face greater strain ahead of the next Bitcoin halving unless the coin’s price rises.
Data show that mining one Bitcoin now costs more than the coin’s market price in the United States, according to data from the Cambridge Bitcoin Electricity Consumption Index. With Bitcoin trading around $87,900, the U.S. national average electricity rate of $0.14 per kWh yields a mining cost of about $94,746, while using the average industrial rate of $0.09 per kWh gives a cost near $86,931, according to U.S. Energy Information Administration data.
Several other countries also face high mining costs driven by business electricity prices. China’s business rate of about $0.11 per kWh implies a mining cost near $88,869, per GlobalPetrolPrices.com. The same $0.11 figure applies to Russia, and Canada’s roughly $0.10 per kWh rate corresponds to an estimated $88,003 cost per Bitcoin, according to GlobalPetrolPrices and GlobalPetrolPrices.
Some markets have become commercially unviable for large-scale mining. A trade body in New Zealand calculated a cost to mine one Bitcoin at about NZ$173,192.96, or roughly $103,799 in U.S. dollars, as reported by local reporting.
Lower-cost energy still sustains mining in parts of South America. Paraguay, which now accounts for around 4% of Bitcoin’s hashrate, has an average business electricity price near $0.05 per kWh and an estimated mining cost around $59,650, according to HashrateIndex and GlobalPetrolPrices.
U.S. miners have responded by repurposing capacity. Companies including Riot Platforms, Bitfarms, Core Scientific, Riot, IREN, TeraWulf, CleanSpark, Bit Digital, MARA Holdings and Cipher Mining have moved partly or fully into AI data-center work, as described in a report for Wired.
Speaking to the press, Canaan’s VP of Capital Markets and Corporate Development said the firm limits risk through low leverage and hardware sales, and added, “We try to keep our power price below 4 cents/kWh, which has historically been sustainable through bear markets…” Canaan also maintains Hosting agreements that allow it to reduce or close operations where economics do not work.
Analysts note rising pressure on miners as prices fall. Digiconomist founder Alex de Vries observed, “You can do the math yourself considering it takes about 1.2 million kWh to mine one Bitcoin at the moment…anything above just 7 cents per kWh in costs will put you at a loss.” He added that miners face additional strain ahead of the next reward halving in two years, saying, “That’s still quite some time, but without substantial increases in the price level by then the miners would get squeezed even further.”
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