As network hashrates reach all-time highs (ATH), bitcoin mining is becoming increasingly competitive. At the end of March 2025, Bitcoin hashrate hit 850 million people.
But in addition to this impressive growth, the industry is struggling with rising production costs and new tariff barriers, especially in the US. These factors put a lot of pressure on mining companies and could reshape the future of the sector.
Hashrate surges and mining costs skyrocket
Bitcoin hashrate measures the total computational power used by miners to protect the network and validate transactions. This is expressed as terrahash per second, representing the number of hash calculations that the network performs per second.
Bitcoin hashrate exceeded 850 million Th/s in March, according to BlockChain.com. This increase reflects an increase in miners participating in the network and increased trust in Bitcoin’s value and security.
Bitcoin hashrate. Source: BlockChain.com
“Every time a network becomes stronger, Bitcoin becomes more difficult to attack, harder to ignore, and more justified to order a higher rating. This is more than just a code. It’s economic gravity. – Thomas Jeegers, CFO & COO of Relai commented.
Despite this surge in hashrates, mining profits have not risen accordingly. According to a Macromicro report, the cost of mining a single Bitcoin has doubled since early 2024, now reaching $87,000. The main drivers of this increase are rising electricity prices and the high operating costs of professional mining hardware (ASICs).
With the price of Bitcoin fluctuating, many mining companies risk operating at loss unless they optimize efficiency. This challenge is particularly severe for small miners who lack the advantages and access of scale to the inexpensive electricity that large businesses enjoy.
Tariff Challenges and China’s dependence on hardware
Another major obstacle to Bitcoin miners is trade restrictions, particularly in the US. According to Coinmetrics, ASIC Miner, manufactured by Chinese company Bitmain, accounts for around 59% to 76% of Bitcoin’s total hashrate.
Estimated domination by ASIC Mainer. Source: Coinmetrics.
Bitmain has long been the dominant player in mining hardware, and popular models such as the Antminer S19 and S21 are known for their high efficiency. However, in early 2025, some US mining companies experienced delays following Bitmain shipments due to customs management and new duties on Chinese imports.
“Even though Bitmain is a large part of Bitcoin’s network hashrate, reliance on a single manufacturer poses potential risks, despite the fact that Bitmain distributes its supply chain. As Bitmain is primarily based in China, its advantage highlights how geopolitical dependence affects the stability of mining operations,” reported Coinmetrics.
These tariffs are not new. The US has imposed a maximum of 27.6% obligation on imported mining from China since 2018, according to SCMP.
However, recent measures have shown increased regulatory scrutiny and trade pressures, further increasing hardware mining costs. This increases operational costs for US-based miners, disrupt supply chains and limits their ability to scale as global hashrates rise.
Recently, Hut 8 Corp., a Bitcoin Mining and High-Performance Computing Infrastructure Firm, has partnered with Eric Trump and Donald Trump Jr. to establish American Bitcoin Corp.
The company aims to become the largest and most efficient Bitcoin mining operation globally while building a strong strategic Bitcoin reserve. The move highlights the growing interest from institutional investors in competitive mining.
