Publication date: December 18, 2025

When people think of Bitcoin, it's often about price movements and investing. But behind every new Bitcoin that comes into circulation is an intensive and costly process: cryptomining. That mining has long since been done not by hobbyists with a computer in the attic, but by large, publicly traded companies with entire data centers full of specialized equipment.

In this article we explain how cryptomining works, which large companies are active in it and what it costs on average to mine one bitcoin.

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What exactly do cryptomining companies do?

In Bitcoin mining, computers control the network by verifying transactions. This is done through the so-called proof of work mechanism. Computers continuously solve complex mathematical puzzles, and whoever finds a solution first gets to add a new block to the blockchain. As a reward, the miner receives new Bitcoins and associated transaction fees.

Because the difficulty of these puzzles is constantly increasing, it requires heavy hardware and enormous amounts of electricity. As a result, mining has become a capital-intensive industry, where scale, energy prices and efficiency make the difference between profit and loss.

Last week, we already wrote an article on exactly how the blockchain works, titled, "How does the blockchain actually work?"
You can read this article back HERE .

What does it cost to mine one bitcoin?

Bitcoin mining has long since ceased to be a hobby project for tech enthusiasts with a few machines at home. By 2025, it will have become a capital-intensive industry in which only parties with scale, cheap energy and highly efficient hardware can compete. Anyone who wants to mine a single Bitcoin today faces steeply rising costs and ever-shrinking margins.

The main cause lies with the April 2024 halving. The block reward was then reduced from 6.25 to 3.125 Bitcoin per block. That means fewer new Bitcoins, while the number of miners and the total computing power of the network continued to increase. The result is higher network difficulty, more energy consumption per Bitcoin mined and rising production costs. The next bitcoin halving is expected in March 2028.

According to figures from TheMinerMag, the average cost to mine one Bitcoin rose above $70,000 in the second quarter of 2025, an increase of more than 9% from the previous quarter. By comparison, at the end of 2024, the median cost was still around $52,000, only to continue rising to around $64,000 in early 2025. The increase is mainly caused by a record level in network hashrate, higher energy prices and declining transaction fee revenues.

Some of the largest Bitcoin mining companies:

• Marathon Digital is one of the largest publicly traded Bitcoin miners in the world. The company operates large-scale data centers in North America and focuses entirely on Bitcoin mining. On an annual basis, Marathon mined between 12,000 and 15,000 Bitcoins on average. Through long-term power contracts and efficient hardware, the company tries to control costs, although profitability remains heavily dependent on the Bitcoin price.
  
  
• Riot Platforms is another large, publicly traded player with extensive mining facilities, primarily in Texas. Thanks to relatively low energy costs and hefty investments in infrastructure, Riot mined about 7,000 to 9,000 Bitcoins annually. Like Marathon, the company keeps a portion of the mined Bitcoins on its balance sheet.
  
  
• CleanSpark focuses on large-scale and energy-efficient Bitcoin mining in the United States. With multiple data centers in energy-rich regions and a strong focus on renewable power and grid stability, the company is trying to keep the cost per Bitcoin low. CleanSpark is steadily expanding its hashpower and mined thousands of Bitcoins annually.

Bitcoin and miners: strongly linked

The chart below clearly shows over the past three years how strongly the price trend of Bitcoin is linked to that of major mining companies. During periods when Bitcoin is rising, shares of miners often accelerate with it. This is because higher Bitcoin prices directly drive higher revenues and margins for miners. Conversely, during corrections in Bitcoin, you usually see mining stocks fall harder as their profitability comes under pressure. In short, the price of mining companies does not move independently of Bitcoin, but often acts as an amplified reflection of the Bitcoin price itself.

Conclusion

Bitcoin mining is the foundation of the entire Bitcoin network. Without miners, there is no transaction processing, no security, and no new Bitcoins. What once began as a technical experiment has grown into a professional industry in which energy, capital and scale are key.

The rising cost per mined Bitcoin makes it clear that only the most efficient parties can survive. At the same time, the strong correlation between the Bitcoin price and the shares of mining companies shows that miners act as a lever in the crypto market. When prices rise, they profit extra, but when prices fall, they are also the first to take the hit.

For investors, mining companies thus offer another way to gain exposure to Bitcoin, with all the opportunities and risks that come with it. It makes clear that Bitcoin is not just a digital asset, but part of a mature ecosystem in which technology, energy and financial markets are increasingly converging.

Disclaimer: Investing involves risk. Our analysts are not financial advisors. Always consult an advisor when making financial decisions. The information and tips provided on this website are based on our analysts' own insights and experiences. They are therefore for educational purposes only.