Part 5/12:

Despite double the hash rate and difficulty—indicating increased network security—mining profitability has plummeted. The average cost to mine a Bitcoin now hovers around $100,000–$110,000, while BTC's price sits near $92,000. This margin squeeze implies that many miners are operating at or below breakeven, making prolonged mining unsustainable without adjustments.

Cost-Cutting and Pivot to AI

To survive, miners have explored ways to lower costs, such as leveraging renewable energy sources (hydropower, solar) and improving infrastructure. Yet, these measures are insufficient in isolation, especially as operational expenses soar. The stark reality is that profitability stress across the industry has reached systemic levels.