Bitcoin mining — Institutions boost investments amid favorable US climate
The Bitcoin mining industry is increasingly attractive to institutional investors due to a favorable regulatory environment and profitability margins. Average costs to mine 1 BTC vary significantly, with estimates ranging from $34,400 to over $92,000, while the cryptocurrency's price reached $98,300. Mining costs differ globally, with Ireland's costs at approximately $321,000 per BTC and Iran's at just over $1,300. Institutional miners are facing operational pressures, leading to potential consolidation in the industry. Daily Bitcoin transaction fees average around $595,000, enhancing mining's economic appeal. Institutional interest is rising, with 83% of surveyed institutions planning to increase crypto allocations. The US Bitcoin mining sector accounted for over 40% of the global hashrate in 2024. Recent investments and IPOs indicate strong institutional momentum, with the industry contributing $4.1 billion to the US GDP and creating over 31,000 jobs. The pro-crypto stance of the new administration may position the US as a leader in digital assets and Bitcoin mining.
