Miners Say Halving Cycles No Longer Drive the Industry
Bitcoin mining is undergoing a major transformation, as industry leaders warn that the traditional boom-and-bust pattern tied to halving cycles no longer defines profitability. Instead, access to low-cost energy and diversified infrastructure is emerging as the ultimate survival strategy.
Speaking at the SALT conference in Jackson Hole, Cleanspark CEO Matt Schultz highlighted the shift: “We used to come here and talk about hash rate. Now we’re talking about how to monetize megawatts.”
Institutional Demand Reshapes Mining Economics
The rise of spot Bitcoin ETFs and institutional accumulation is changing market dynamics. “The four-year cycle is effectively broken with the maturation of Bitcoin as a strategic asset,” Schultz explained. “Recent ETFs have consumed infinitely more bitcoin than have been generated so far this year.”
Cleanspark, which operates 800 megawatts of energy infrastructure and has 1.2 gigawatts in development, is now looking beyond proof-of-work mining. Schultz said their rapid energy deployment opens opportunities to monetize electricity for AI and data center operations, giving the company greater flexibility than ever before.
Power Costs Dominate Profitability
Patrick Fleury, CFO of Terawulf, described the economics of mining as brutally challenging: “Bitcoin mining is an incredibly difficult business.” He explained that with electricity priced at five cents per kilowatt hour, it costs about $60,000 to mine one bitcoin. At the current price of $115,000, nearly half of that revenue is consumed by power alone.
“Once corporate expenses and other operating costs are factored in, margins tighten quickly,” Fleury added. The conclusion? Profitability hinges almost entirely on securing ultra-low energy prices.
The Future: Diversification or Exit
As Bitcoin’s hash rate climbs and competition intensifies, miners are turning to AI hosting, high-performance computing, and energy resale to stabilize revenues. For those unable to adapt, the road ahead looks uncertain.
The message from Jackson Hole is clear: in the new era of Bitcoin mining, power—not hash rate—is the real currency.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.
