According to JPMorgan (JPM) analysis, Bitcoin (BTC) miners experienced a transformative second quarter in 2025, achieving unprecedented cash operating profits while accelerating their pivot toward high-performance computing (HPC) infrastructure.
The report highlighted significant industry developments including Cipher Mining's (CIFR) 244-megawatt colocation agreement with Fluidstack and IREN's (IREN) expansion exceeding 23,000 GPUs, demonstrating the sector's strategic shift.
Despite increasing network hashrates, miners' gross profits showed quarter-over-quarter improvement, supported by higher Bitcoin prices and more efficient mining operations. Production costs saw moderate increases due to intensified competition and expanding HPC investments.
Power cost analysis revealed IREN and Cipher maintained the lowest expenses at approximately $29,000 and $31,200 per Bitcoin, while Marathon Digital (MARA) recorded the highest at about $56,200. On a fully-loaded cost basis including power and operational expenses, IREN and CleanSpark (CLSK) led with costs of $54,000 and $60,000 per coin respectively, compared to Riot Platforms' (RIOT) $81,000.
The banking institution reported accelerated fundraising activity with approximately $590 million in new equity issuance, significantly exceeding first-quarter levels, with substantial capital directed toward HPC initiatives. IREN secured $263 million to complete its 50-exahash expansion and commence construction of a 75MW liquid-cooled data center facility.
Industry energy expenditures reached a record $2.1 billion while gross profits remained stable at approximately $2.1 billion, maintaining margins near 53%. JPMorgan concluded that Bitcoin's market strength and operational efficiency improvements continue to offset network growth, preserving profitability despite escalating competitive pressures.