Canaccord Genuity Sees Stable Bitcoin Mining Profits in 2025 Amid Growing Demand for AI Hosting
According to a recent report by Canaccord Genuity, Bitcoin (BTC) mining is expected to remain profitable in 2025, with mining costs staying stable and production economics holding strong.
The report estimates that the cost-to-mine for leading Bitcoin miners is between $26,000 and $28,000 per Bitcoin. With Bitcoin trading at around $105,000 at the time of publication, the report suggests that mining remains a lucrative activity for large-scale miners.
A notable trend highlighted in the report is the increasing interest in alternative applications for the substantial power resources held by Bitcoin miners. Artificial intelligence (AI) data center hosting is emerging as a key sector for mining companies to explore. Core Scientific (CORZ), for instance, signed a 12-year partnership with CoreWeave, an AI hyperscaler, in June 2024, marking a significant shift for the industry.
Joseph Vafi, one of the analysts behind the report, pointed out that AI demand is expected to eventually surpass the traditional cloud hosting market, creating new growth opportunities for Bitcoin miners.
Additionally, Canaccord Genuity expects to see more co-hosting agreements in the coming months, with Galaxy Digital (GLXY) and Applied Digital (APLD) among the companies likely to make announcements in the AI hosting space.
Following the April 2024 Bitcoin halving, many larger publicly traded miners are using their capital access to upgrade their equipment, strengthening their competitive edge and increasing their share of the network’s hashrate. The hashrate is an important indicator of mining competition and network difficulty.
In conclusion, Canaccord’s report suggests that Bitcoin mining will continue to thrive, not only due to stable profitability but also because of the growing diversification into new markets like AI infrastructure. This trend is expected to contribute to the sector’s long-term growth and resilience.
