Canaccord Genuity Projects Continued Profitability for Bitcoin Mining in 2025

According to a recent Canaccord Genuity research report, Bitcoin (BTC) mining is expected to remain profitable in 2025, as production costs stabilize and mining fundamentals remain strong.

The report highlights that mining costs for large-scale participants are currently in the range of $26,000 to $28,000 per bitcoin, which aligns with the steady economics of production in the industry. At the time of publication, Bitcoin was trading around $105,000.

The report also notes an increasing focus from both management and investors on finding alternative uses for the significant power supplies utilized by Bitcoin miners, with a particular interest in AI data center hosting. A notable example is Core Scientific (CORZ), which signed a 12-year agreement with CoreWeave, an AI hyperscaler, in June 2024. This deal is considered a potential game changer for the sector, as AI demand is projected to eventually outpace traditional cloud hosting services.

Joseph Vafi, one of the analysts behind the report, remarked that early demand forecasts show AI could overshadow the traditional cloud hosting market in the long term, further fueling opportunities for Bitcoin miners in new sectors.

In addition to AI ventures, Canaccord Genuity expects further co-hosting agreements to be announced in the early part of 2025, with potential developments from firms like Galaxy Digital (GLXY) and Applied Digital (APLD).

Furthermore, many large publicly traded Bitcoin miners are using their access to capital to upgrade their mining fleets following April’s halving event. This strategy is strengthening their competitive edge and increasing their share of the network hashrate, a key indicator of competition and mining difficulty. The hashrate represents the total computational power used to mine and process transactions on the Bitcoin network.

In summary, Canaccord Genuity remains confident in Bitcoin mining’s continued profitability and future growth, driven by the industry’s evolving role in emerging sectors like AI hosting and new technological advancements.