Canaccord Anticipates Stability and Profitability for Bitcoin Mining in 2025.

Canaccord Genuity Forecasts Stable Profitability for Bitcoin Mining in 2025

Bitcoin mining is expected to maintain profitability through 2025, with production costs remaining stable, according to a recent report by Canaccord Genuity.

The research highlights that costs to mine a single Bitcoin for major players are currently between $26,000 and $28,000, with mining fundamentals still holding strong. At the time of the report, Bitcoin was priced around $105,000.

The report also pointed to growing interest in alternative uses for the substantial power capacities of mining companies, particularly for artificial intelligence (AI) data center hosting. A key example is Core Scientific (CORZ), which signed a 12-year contract with AI hyperscaler CoreWeave last June. This partnership has been viewed as a transformative move for the industry.

According to Joseph Vafi, an analyst with Canaccord, the demand for AI is expected to outpace the traditional cloud hosting market in the coming years. This trend could provide new opportunities for Bitcoin miners to diversify their revenue streams.

The report also noted that more co-hosting agreements are likely to emerge in 2025, with potential announcements from companies such as Galaxy Digital (GLXY) and Applied Digital (APLD).

Following the April 2024 reward halving, many of the largest publicly traded miners have used their access to capital to upgrade their fleets, enhancing their competitive positioning and expanding their share of the Bitcoin network hashrate. The hashrate is a key metric indicating mining difficulty and competition in the industry.

Canaccord Genuity’s optimistic outlook for Bitcoin mining highlights its continued profitability and the growing role of miners in emerging sectors like AI infrastructure. As Bitcoin mining evolves, these new opportunities are expected to drive long-term growth for industry players.