Rising bitcoin prices, enhanced operational efficiency, and increased investment in high-performance computing (HPC) drove a strong second quarter for bitcoin miners, according to Wall Street bank JPMorgan (JPM).

The bank described the summer of 2025 as transformative for miners, marked by record cash operating profits and a growing shift toward HPC infrastructure. Key developments highlighted included Cipher Mining’s (CIFR) 244 MW colocation deal with Fluidstack and IREN’s (IREN) expansion to over 23,000 GPUs, reflecting the sector’s pivot to high-performance computing.

Despite rising network hashrates, analysts noted that miners’ gross profits increased quarter-over-quarter, supported by higher bitcoin prices and more efficient mining operations. Production costs rose only modestly amid competition and HPC investments.

Cost analysis showed IREN and Cipher Mining had the lowest power costs per bitcoin mined at roughly $29,000 and $31,200, respectively, while MARA (MARA) had the highest at $56,200. On a fully loaded basis (power plus cash SG&A), IREN and CleanSpark (CLSK) led with costs near $54,000 and $60,000 per BTC, compared with Riot (RIOT) at $81,000. With bitcoin averaging around $98,500 in Q2, most operators remained profitable.

JPMorgan also noted a surge in fundraising, with miners issuing approximately $590 million in new equity, much of it directed toward HPC projects. IREN raised $263 million to complete its 50-exahash expansion and begin building a 75 MW liquid-cooled data center, Horizon 1. Total capital expenditures across the sector reached about $900 million, up sequentially but below late-2024 peaks.

Energy spending also hit a record, with miners collectively spending an estimated $2.1 billion, while gross profits held steady at roughly $2.1 billion, delivering margins near 53%.

The report concluded that strong bitcoin prices and operational efficiencies continued to offset the effects of network growth, maintaining profitability even amid intensifying competition in the sector.