Bitcoin (BTC) mining is likely to remain profitable this year with stable production economics, Canaccord Genuity said in a research report on Tuesday.
The broker said mining fundamentals are strong, “with cost-to-mine sitting somewhere in the ~$26,000-$28,000 range per bitcoin for most of the top players.”
The world’s largest cryptocurrency is trading around $105,000 at the time of publication.
Management and investor attention is also increasingly catching up with alternative uses for these companies’ large power supplies, especially hosting artificial intelligence (AI) data centers.
Bitcoin miner Core Scientific (CORZ) has signed for 12 years contract with AI hyperscaler CoreWeave in June last year. The deal was viewed as a game changer for the sector.
“Early demand forecasts point to AI shrinking the traditional cloud hosting market over time,” wrote analysts led by Joseph Vafi.
More co-hosting deals are expected to be announced early this year, with potential news from Galaxy Digital (GLXY) and Applied Digital (APLD), the report said.
Many of the larger publicly traded miners are using their access to capital to upgrade their fleets following last April’s reward sharing eventand this strengthens their competitive position and share of the network hashrate, Canaccord said.
The hashrate refers to the total combined computational power used in mining and processing transactions in a proof-of-work blockchain and a proxy for industry competition and mining difficulty.
Read more: Bitcoin Miners 2025 has started on a Strong Footing, JPMorgan Says
