Crisis Deepens in Bitcoin Mining Industry... Mining Costs Soar and Stock Prices Fall

Source: DigitalToday Original Title: Bitcoin Mining Industry Shaken… Most Mining Stocks Fall, Costs Surge Original Link:

The Bitcoin mining industry is facing a crisis. The stock market fell 1.8% compared to last week, and trading volume dropped by 25.66%. Market capitalization also shrank from $69.12 billion to $67.89 billion.

According to blockchain media outlet Cryptopolitan, 25 out of 34 Bitcoin mining stocks declined, and among the top 10 companies, only Applied Digital(APLD) and Core Scientific(CORZ) avoided the downtrend, rising by 15.2% and 1.3% respectively. In contrast, American Bitcoin(ABTC) plunged 47.4%. This company, co-founded by Eric Trump, saw its stock price collapse due to selling pressure from early investors, even as Bitcoin prices were rising.

Bitcoin mining costs are also increasing rapidly. According to CryptoRank(CryptoRank), the Bitcoin production cost for public mining companies is $74,600, and when including depreciation and other expenses, it reaches $137,800. This is attributed to intensifying competition as the hashrate surpasses 1 zettahash(ZH/s). As a result, mining companies are moving to diversify revenue streams into artificial intelligence(AI) and high-performance computing(HPC).

If Bitcoin price volatility and soaring production costs continue, the burden on mining companies is expected to increase further. The future direction of Bitcoin prices and hashrate competition will be key variables affecting the business strategies and survival of the mining industry.