Bitcoin Mining Costs Worsen as BTC Trades Below Production Cost

JPMorgan analysts have found that Bitcoin mining costs have 'worsened' as BTC trades below production cost, pushing roughly one in five miners into unprofitable territory.

According to a client note circulated by JPMorgan this week, the current all-in production cost of bitcoin is about $78,000. This figure is derived from electricity, hardware depreciation, and overhead expenses across public miners. With bitcoin trading near $63,000, the gap between spot price and breakeven has created a sustained squeeze across the sector.

JPMorgan notes that the beta of mining difficulty to BTC prices has risen to 0.62 over the past six months, reflecting a network in which a higher share of miners sit at or near their cost floor. This shift is evident in the recent decline of mining difficulty, which fell 10.09% in June, its second-largest single decline this year.

The financial strain has pushed publicly traded miners into a corner, with operators including MARA, CleanSpark, Riot Platforms, Cango, Core Scientific, and Bitdeer selling a combined 32,000 bitcoin in Q1 2026 alone to fund operating expenses. This figure surpasses those companies' total bitcoin sales for all of 2025, setting a new quarterly record.