Bitcoin Miners Posted Record Profits in 2Q as HPC Push Accelerated, JPMorgan Says

Core Insights - The second quarter and summer of 2025 were transformative for bitcoin miners, characterized by record cash operating profits and a shift towards high-performance computing (HPC) [1] - Despite increased hashrates, miners' gross profits rose quarter-over-quarter due to higher bitcoin prices and more efficient operations [2] Financial Performance - Production costs increased modestly due to intensified competition and expanded HPC investments, with IREN and Cipher having the lowest power costs per bitcoin mined at approximately $29,000 and $31,200, while MARA had the highest at about $56,200 [3] - On a fully loaded basis, IREN and CleanSpark led with costs near $54,000 and $60,000 per coin, compared to Riot's $81,000, while bitcoin averaged around $98,500 in the quarter, allowing most operators to remain profitable [3] Fundraising and Capital Expenditure - Miners accelerated fundraising efforts, issuing about $590 million in new equity, significantly up from the first quarter, with much of the funds directed towards HPC projects [4] - IREN raised $263 million for its 50-exahash expansion and the construction of a 75MW liquid-cooled data center named Horizon 1, with total capital expenditure across the group reaching approximately $900 million [4] Energy and Profit Margins - Miners collectively spent a record $2.1 billion on energy, while gross profits remained steady at around $2.1 billion, resulting in margins near 53% [5] - The strength of bitcoin and improving efficiency helped maintain profitability despite increasing competition and network growth [5]