In the first quarter of 2025, the performance of US-based publicly traded Bitcoin
$104,983 mining companies attracted significant attention.
According to the latest report from JPMorgan, this period stood out as one of the best quarters ever for mining companies. Analysts Reginald Smith and Charles Pearce highlighted a strong recovery in both revenues and profitability within the sector.
Increase in Revenues and Profitability
The JPMorgan report stated that four out of the five monitored Bitcoin mining companies reported record levels of revenue and profit. This development was influenced by high Bitcoin prices and increased institutional investor interest. The report revealed that US mining companies collectively achieved a gross profit of $2 billion, with average gross margins rising to 53%. In the previous quarter, the sector’s gross profit had been $1.7 billion with an average margin of 50%.
Among the prominent firms in the sector, MARA Holdings remained the top Bitcoin producer for the ninth consecutive quarter. However, this success came with the caveat of high production costs. According to JPMorgan’s data, MARA’s average cost per Bitcoin was calculated to be approximately $72,600.
Company-Specific Performances
In terms of gross profitability, IREN stood out. It became the company achieving the highest gross profit among the monitored firms for the first time. The total cash cost per Bitcoin production dropped to about $36,400 for the company. This led to a significant increase in the firm’s profitability.
IREN shone with the gross profit attained in the first quarter, significantly enhancing its margins through lower production costs. Meanwhile, CleanSpark did not increase equity throughout the quarter. JPMorgan indicated that the five mining companies it monitored only raised a total of $310 million in capital in the first quarter, a notable decrease from the $1.3 billion in the previous quarter.
Growth and Sustainability
Mining companies also increased their operating expenses. Total energy costs recorded were $1.8 billion, showing an increase of $50 million compared to the previous quarter. This highlighted the industry’s energy-intensive nature once again.
JPMorgan continues to provide a positive outlook for some companies within the sector. The bank maintained its positive rating for CleanSpark, IREN, and Riot Platforms while giving a neutral rating for Cipher Mining and MARA.
JPMorgan reports that some mining companies maintain their profitability and growth potential, emphasizing the importance of disciplined growth in the industry. The first quarter of 2025 marked a period of record revenue and profits in Bitcoin mining. Companies that managed to control production costs and scale their operations stood out positively in the sector. With high Bitcoin prices, companies were able to sustain operations with lower capital increases. Energy costs were a prominent expense category in the industry. A crucial point for readers is that companies’ focus on cost management and efficiency for sustainable growth could be a determining factor for future profitability.
