2025 Digital Mining Industry Survey Report

Summary

Recent industry research shows that Bitcoin Mining has evolved into an energy-centric, capital-intensive data center business. The industry exhibits three main characteristics: rapid efficiency improvements of dedicated integrated circuits, significant capital inflows from institutions, and an increasingly green energy structure.

The research covered nearly half of the total hash rate of the Bitcoin network, revealing the following key findings:

1. Scale and Efficiency: The cumulative electricity consumption in 2024 reaches 138 TWh(. The energy consumption per unit of computing power decreases by 24% to 28.2 J/TH.

2. Sustainability: 52.4% of the Mining load is supplied by sustainable energy. The annual greenhouse gas emissions amount to 39.8 million tons of CO2 equivalent, accounting for approximately 0.08% of global emissions.

3. Geographical Distribution: The survey shows that about 75% of the computing power is located in the United States. Paraguay, the UAE, Norway, and Bhutan have become emerging mining centers.

4. Cost and Revenue: The median electricity cost is $45 per megawatt hour. The average total operating cost is $55.5 per megawatt hour. The rise in Bitcoin prices in the fourth quarter of 2024 has driven "mining profits" to a record high.

5. Risk Factors: Major risks include rising energy prices, policy uncertainty, and concentration of ASIC supply. Common mitigation measures include long-term power hedging, multi-location deployment, and vertical integration of energy assets.

Industry Fundamentals

) Cybersecurity and Economy

1. 2024 Halving: The block reward will decrease from 6.25 Bitcoins to 3.125 Bitcoins. Although transaction fees account for an average of only 6% of miner income, they can exceed the block reward during network congestion.

2. Security Budget: Despite the halving of rewards, the total network hashrate still climbed to 796 EH/s by the end of the year, indicating miners' continued investment willingness.

3. ASIC Development: The latest 5nm and 3nm chips have a power consumption of less than 20 J/TH. A new generation of devices is expected to be launched in 2025-2026, with a doubling of efficiency.

( Capital Structure

About 41% of the global computing power is controlled by listed companies. After the deleveraging in 2023, the net debt/EBITDA ratio of major companies is generally below 0.5.

Environment and ESG Performance

• Sustainable energy accounts for 52.4%, an increase of 15 percentage points year-on-year.
• Carbon intensity 288g CO2e/kWh, a decrease of 34% compared to 2021
• Total greenhouse gas emissions of 39.8 million tons CO2e, a decrease of 21% compared to the 2021 forecast.
• Demand response reduction of 888 GWh
• 70.8% of companies have adopted carbon reduction measures

It is expected that by 2027, the carbon intensity of the industry will drop below 200 grams CO2e/kWh. Miners using more than 50% low-carbon electricity can gain a financing advantage of 50-150 basis points.

Operating Cost Analysis

) Power cost quartile ### cents/kWh ###

• ≤3.2: Direct hydropower, wind power, self-generated power; can be profitable in almost any market condition.
• 3.2-4.5: Long-term power purchase agreements in North America or Northern Europe; lower cost but requires modern equipment.
• 4.5-6.0: Industrial electricity prices or discounted grid power; profits rapidly compressed after halving or price drop.

• 6.0: Retail grid electricity; the first to shut down in a bear market

ASIC Efficiency Quartiles ( J/TH )

• ≤25: Latest generation immersion cooling equipment
• 25-30: 2023 model equipment
• 30-40: Hardware from 2021-2022; feasible only at low electricity prices.

• 40: Old mining machines; electricity price must be below 3 cents/kWh to be profitable

Overall, the cost of mining 1 Bitcoin ranges from $14,000 to $36,000. Low-cost, high-efficiency operators can "mine and hold" during downturns while providing grid services; high-cost operators are the first to suffer when prices fall.

Risk and Regulatory Landscape

The main risks include:

• Proposal for Federal Energy Consumption Tax in the United States
• European Carbon Tax
• ASIC supply interruption
• Bitcoin prices have been sluggish for a long time.

Response strategies include regional diversification, signing long-term power agreements, multi-channel procurement, and advance inventory.

Strategic Growth Theme

1. AI/HPC Integration: Facilities repurposed for AI training, potential revenue of 1.0-1.5 dollars/kWh

2. Vertical Energy Integration: Joint ventures with energy producers, targeting total electricity costs < 3 cents/kWh

3. Green Bitcoin Premium: The certification program aims to sell "green" tokens at a 1-3% premium.

Valuation and Monitoring

• The expected EV/EBITDA for major miners in North America in 2025 is 4.8-6.2 times.
• Each hash price ###P/PH(: 45 million - 70 million USD

Key catalysts in the next 12 months:

• Large-scale inflow of ETFs
• New generation ASIC mass shipment
• The decision of the U.S. FERC on flexible load payments
• Final Version of the EU MiCA Sustainability Rules

Investment Advice

• Vertically integrated miners with electricity costs <0.05 USD/kWh, equipment efficiency <25 J/TH, and renewable energy ratio >50%.
• After the clarification of U.S. tax policies and EU carbon disclosure, consider increasing holdings in custodial service providers or single regional operators.
• Reduce holdings/avoid reliance on high-priced electricity ) > 0.07 USD/kWh ( or inefficient equipment ) > 40 J/TH ( of highly leveraged miners