Cost of mining 1BTC rises 9% to $70,000 due to rising hash rate and energy prices

In the second quarter of this year, the intermediate cost of producing one Bitcoin (BTC) reportedly exceeded $70,000 due to a combination of rising hash rates and rising energy prices.
TheMinerMag, a Bitcoin mining analysis company, recently released an industry report stating that "Bitcoin mining costs will reach $1.2 billion by the fourth quarter of 2024."
It is expected to surge 23% from $52,000 at the time of this writing to $64,000 in the first quarter of 2025, and then rise 9.4% in the second quarter to surpass $70,000."
The Miner Mag said, "Just looking at direct production costs, it is estimated that this quarter will exceed $70,000."
Bitcoin is currently trading at the $107,635 mark, with most miners still in profitable range.
However, this production cost estimate does not reflect depreciation of mining equipment or revenue earned on equipment leased to clients, so the actual rate of return may be lower.
In particular, less efficient miners are likely to see their profit margins fall sharply, so there is increased emphasis on minimising capital expenditure and increasing energy efficiency.
"Publicly listed mining companies are focused on lowering the hashing costs of their fleets," TheMinerMag said in a report.
The median hashing cost for miners remained at around $34 per PH/s, with Terawulf and Bitdeer increasing by more than 25%.
Terawulf cited rising energy costs as the main cause, predicting that the average cost of electricity per kilowatt-hour (kWh) in the first quarter of 2025 will be 0.
It said its cash flow had risen to $0.081, nearly double the figure for the same period last year ($0.041).