Bitcoin miners are shutting down rigs by 2025

Why the rigs have gone dark

The mining industry is currently experiencing one of its most difficult margin environments in recent years.

According to recent breakdownThe hash revenue of large public miner has dropped from $55 for petahashes per day (PH) in Q3 down to $35 today. The median cost per petahashes (PH)/day is around $44. A significant portion of the mining sector now operates at a deficit.

a similar time, the network hashrate The hovering is around 1.0-1.1 The competition is at record levels for every block.

ROI is the key: even newer machines show payback times above 1,000 days. Meanwhile, the next halving of costs is approximately 850days away. The future of many mines is uncertain if there are no changes. buying hardware Unless the conditions on the markets improve, today’s investors may have a hard time earning back their money before the next half-off.

This guide will explain how mining economics works in 2025. You’ll learn how to determine if you have underwater machines and the options that are realistically available.

The miner’s economics in 2025

Every miner now fights for a smaller slice of the pie after the halves.

• It is important to note that the word “you” means “you”. block subsidy Dropped from 6,25 BitcoinBTCThe main source of revenue for miners is cut in half, from 3,125 BTC to 2,625 BTC by 2024.

• The daily new issue of BTC is approximately 450 BTC plus fees, with 144 blocks being issued each day.

• The network hashrate is now around 1 ZH/s, based on the averages of the last seven days.

It is a record low for the hash power price per PH/day. Crypto publications and trackers have put the recent level at $35-$38 for PH/day, or around $0.03-$0.04 each terahash per day.

Miners are juggling:

• Capital expenditures (capex). Transformers, racks and networking, as well as application-specific integrated chip machines (ASICs).

• Operating expense (Opex) Energy price per kWh (kilowatt), hosting margins, cooling, maintenance and debt service.

Two hurdles must be overcome to stay alive:

1. The cash flow test is: Does the daily revenue exceed daily operating costs based on today’s power and hash prices?

2. The payback test is: can the equipment earn back the purchase price in a reasonable time frame before the next hardware obsolescence or halving?

Most setups can benefit from these two metrics.

Did you Know? A kilowatt-hour (kWh) in mining is what you are charged for when it comes to your electric bill. The kWh is the unit that determines how much electricity you spend on a daily basis.

The new generation of gaming rigs still struggle to earn a living

The story gets uncomfortable when you run modern hardware.

The top machines in the market, like Bitmain’s Antminer S21, and Whatsminer M60 Series, can deliver 17-22 joules/terahash. The new generation is an enormous leap over older models and has become the standard minimum for large-scale deployments.

This level of efficiency on paper should translate to comfortable margins. In the real world:

• Even the most energy-efficient rigs, which cost $35 to $38 per day for PH, barely cover the electricity costs of miners who pay mid-range industrial rates.

• Analysts say that many companies can break even at $40/PH/day. Every hour spent online below that threshold eats away at reserves.

• ASIC Payback Periods now exceed 1,000 At current hardware sales and prices, the days are longer than time remaining until the second halving.

Some guides on profitability suggest that at these power prices, purchasing spot BTC is more convenient than mining. But the final decision depends on each individual’s circumstances.

It is because of this that rigs go dark. Each additional block of time increases the loss.

Did you Know? The joules-per-terahash rating (J/TH), which is used by a miner to calculate how much energy the machine uses, shows precisely what it consumes in order to perform hashing. A lower J/TH rating means that the machine can perform the same number of terahashes with less energy, making it the most accurate indicator for ASIC efficiency.

What to do if your machine has been submerged?

You can easily run this framework in just 15 minutes.

Take note of your number:

• ASIC Model and Hashrate

• The manufacturer’s specification sheet shows the efficiency (J/TH).

• The price of power per kWh, including energy and demand charges as well as hosting fees

• The pool fee as well as any fees at the site level.

  Estimate daily revenue:

• Add up your total hashrate, in either PH or TTH. Then multiply that by the hash feed price at this time. For example: $35-$38/PH/day.

• Remember that if you want to use the TH unit, $35 is $0.035 per day per PH.

  Calculate the daily electricity cost

• Convert efficiency to power draw: (J/TH x hashrate in TH) ÷ 1,000 = kW

• Multiply kW x 24 x kWh price

• You should add a buffer of 5%-10% for losses due to cooling, network and transformers.

  Cash flow test

• You are losing money every time you remain online if your revenue is less than the cost of power.

• Check if you can still rely on your numbers if hash prices drop by 10%. difficulty rises 10%.

• This scenario will make you think negatively, and you’ll be relying on BTC as a moonshot.

  Use the Payback Test

• Divide your ASIC’s purchase price by the net daily profits, or revenue less operating costs.

• When the return on investment is greater than the period until the next halving (about 2.3 year from now), treat the purchase of new hardware as a bet, rather than a solid investment.

The setup will often look like an expensive form of theft if both tests fail. dollar cost averaging It is better to have a mining operation that’s sustainable than one without.

What to do when mining is no longer profitable

Even if your math seems shaky, there are still a couple of levers that you can use.

Selectively throttle or throttle

You can also use underclock machines to stop the poorest performers, or only run them during tariff periods when they are not at peak. Grid operators in some markets even pay sites large sums of money to reduce power during times of stress.

Chase cheaper electrons

Hosted miners can re-negotiate contracts, or move to facilities offering lower blended energy rates. On an industrial level, there is a trend toward stranded sources of energy such as flared gas, renewables behind the meter, and other unreliable power.

Site Repurposed

Some operators experiment with AI and other high-performance workloads by renting out spare capacity. This isn’t a replacement because cooling, networking, and customer relations all change. But it can transform a substation that has been abandoned into a data center.

Consolidate your business or leave

Some operators may find it more cost-effective to sell rigs and consolidate than continue through another difficult epoch.

Bitcoin and future mining shutdowns

Miner pain is not always a sign of protocol risk.

When enough operators close down, historically, the difficulty levels adjust downwards and increase margins for survivors. The cycle has become more complex because the large miners, who have low-power contracts and hedge strategies to protect themselves from losses, can continue for longer.

The bar has been set for anyone who is considering mining in the year 2025.

• All in, power is about $0.06 per kWh or less

• The current generation is more efficient, as the sub-20-J/TH-hardware is no longer an option

• Discipline is required, including regular checks to see if the numbers are working and an ability to stop when they don’t.

Bitcoin’s waves of miner closures are more than a reset. Capital and energy have been transferred from the inefficient to the leaner operators.

It is easy to see why smaller players are uncomfortable: The economics of mining BTC often favors buying BTC, but this can vary depending on power rates or hardware efficiency.