Bitcoin (BTC) mining will likely remain profitable this year, with stable production economics, Canaccord Genuity said in a research report on Tuesday.
The broker said the mining sector’s fundamentals are strong, “with the cost of operating between $26,000 and $28,000 per bitcoin for most major players.”
The world’s largest cryptocurrency was trading around $105,000 at press time.
Management and investor attention is also increasingly being drawn to alternative uses for these companies’ large power supplies, particularly the hosting of artificial intelligence (AI) data centers.
Bitcoin miner Core Scientific (CORZ) signed a 12-year contract with AI hyperscaler CoreWeave in June last year. This agreement was considered a turning point for the sector.
“Early demand forecasts indicate that AI will eclipse the traditional cloud hosting market over time,” wrote analysts led by Joseph Vafi.
Further 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 largest publicly traded mining companies are using their access to capital to upgrade their fleets following last April’s reward halving event, strengthening their competitive position and share of the network hashrate , said Canaccord.
Hashrate refers to the total combined computing power used to mine and process transactions on a proof-of-work blockchain and is an indicator of industry competition and mining difficulty.
Read more: Bitcoin miners started 2025 on solid footing, says JPMorgan
