In a research report, JPMorgan stated that low electricity costs and a high sustainable energy mix are crucial for Bitcoin miners to survive in an increasingly competitive market. The cost of electricity is the main expense in mining, and miners have been seeking cheaper and sustainable energy sources to protect their profitability. The US, where most mining firms are based, has seen falling electricity prices, which should help contain the rise in Bitcoin production costs. Miners with higher electricity costs, such as Core Scientific, Argo Blockchain, and Iris Energy, have struggled to survive due to falling Bitcoin prices. JPMorgan predicts that the industry will consolidate over time, with only miners with lower production costs able to survive. Miners are also attempting to diversify their power mix with renewable sources to become more environmentally friendly.
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