Rising bitcoin prices, more efficient mining technology, and massive investments in computing power created ideal conditions for miners. According to JPMorgan’s analysis, the mining sector recorded all-time-high operating profits in the second quarter of 2025.

While the network hashrate – the total computing power involved in mining — surged, profitability remained high thanks to several factors: the growing price of bitcoin, increasing efficiency of mining equipment, and the expansion into high-performance computing (HPC).

Record profits despite growing competition

JPMorgan analysts reported that miners achieved record gross profits of around $2.1 billion in Q2, with gross margins at about 53%. The average bitcoin price during the period hovered around $98,500, allowing most miners to stay highly profitable despite rising production costs.

One of the main trends was the acceleration of HPC investments — into data centers and computing capacity used not only for cryptocurrencies but also for artificial intelligence, modeling, and cloud services. For instance, Cipher Mining (CIFR) signed a colocation agreement with Fluidstack for 244 MW of capacity, while IREN (IREN) expanded its computing park to over 23,000 GPUs. This shift shows that miners are diversifying their activities and no longer rely solely on traditional bitcoin mining.

Costs are rising, but efficiency wins

Although competition is intensifying and HPC investments have increased costs, some players managed to maintain remarkably low production expenses. IREN and Cipher had the lowest bitcoin production costs — roughly $29,000 and $31,200 per coin. Marathon Digital (MARA), on the other hand, reported the highest cost at about $56,200 per coin.

When including other operational expenses such as SG&A, IREN and CleanSpark (CLSK) again led with total costs of around $54,000 and $60,000 per bitcoin. By comparison, Riot Platforms (RIOT) reported costs of about $81,000.

Miners raise capital and focus on expansion

The JPMorgan report also shows that miners significantly accelerated capital raising. In Q2, they issued new shares worth approximately $590 million — a sharp increase compared to the first quarter. Most of the funds are directed toward developing high-performance computing centers.

IREN raised $263 million from this capital to complete the expansion of its mining capacity to 50 exahashes and to build a new 75MW data center, Horizon 1, with liquid cooling. Total capital expenditures in the sector reached around $900 million — slightly less than at the end of 2024 but following a clear upward trend.

Record energy spending

Energy costs remain one of the key factors. According to JPMorgan estimates, miners spent a record $2.1 billion on electricity, reflecting the increasing network complexity. Nevertheless, they maintained high profitability thanks to technological innovations and a strong bitcoin market.

Sources:

https://www.coindesk.com/markets/2025/10/07/bitcoin-miners-posted-record-profits-in-2q-as-hpc-push-accelerated-jpmorgan-says

https://finance.yahoo.com/news/bitcoin-miners-market-cap-hit-132902715.html