Author | Woo Blockchain
1. CoreWeave's $1 billion acquisition of Core Scientific sets industry benchmarks, leading to large-scale AI/HPC transition by mining companies link link
In late 2025, major mining companies accelerated their transition to artificial intelligence (AI) and high-performance computing (HPC) as mining profitability continued to be compressed. In July, AI infrastructure unicorn CoreWeave announced an all-stock acquisition of Bitcoin miner Core Scientific, valuing the deal at approximately $9 billion. Core Scientific will provide 1.3 gigawatts of scarce power capacity to support AI-related operations.
In November, another mining company, IREN, announced a five-year GPU cloud computing services agreement with Microsoft worth up to $9.7 billion and began deploying NVIDIA GB300 GPU clusters.
This trend represents a fundamental transformation of the mining business model. Companies such as Hut 8 and Bit Digital (through its WhiteFiber division) also enter into long-term data center hosting agreements lasting 10 to 15 years to monetize compute and power assets. Analysts note that AI hosting typically provides a more stable cash flow while generating higher returns than traditional mining, and that the industry's focus is gradually shifting from “hash rate rankings” to “AI contract value.”
2. Bitcoin network hashrate exceeds 1 ZH/s, all-in cost per BTC soars to $137,000 link
In December 2025, Bitcoin's total network hash rate officially crossed the symbolic milestone of 1 ZH/s (Zettahash), marking the industry's entry into an era of extreme competition. According to CryptoRank data, the average cash cost for a publicly traded mining company to produce 1 BTC amounts to approximately $74,600. Including depreciation and stock-based compensation (SBC), the total cost increases to approximately $137,800.
Rising costs have extended mining payback periods to more than 1,200 days and raised financing costs. Even the most efficient miners are operating near break-even, accelerating the exit of smaller miners and encouraging large miners to diversify into AI-related businesses.
3. As Eric Trump launches American Bitcoin and aims to list it, the Trump family also strengthens its participation link
In 2025, the family of former US President Donald Trump became increasingly active in the cryptocurrency mining field. In March, Eric Trump partnered with mining company Hut8 to form American Bitcoin Corporation (ABTC). The company subsequently announced plans to raise $220 million and seek a NASDAQ listing through a reverse merger with Gryphon Digital Mining.
The Trump family's involvement is widely seen as an important signal of political support for U.S. domestic mining, even though the stock price fell nearly 50% in a single day in December after the lock-up period ended. Eric Trump has repeatedly expressed his intention to build a “strategic reserve” for Bitcoin and promote the United States as a global center of hashrate.
4. Russia recognizes mining as an “export project” but proposes the “strictest ban in history” link link
Towards the end of 2025, Russia adopted a two-track approach to mining regulation. On the one hand, the government has proposed a permanent year-round mining ban in regions such as Buryatia and Zabaikalsky Krai, with some restrictions set to last until 2031, and illegal mining could be criminalized. Meanwhile, President Vladimir Putin's economic advisor Maxim Oreshkin has publicly stated that Bitcoin mining is an “undervalued export project” that supports the ruble.
Russia currently accounts for almost 16% of the global hashrate, second only to the United States. Russia's central bank and finance ministry are exploring ways to include mining in balance of payments statistics to ease sanctions and use crypto assets for cross-border payments, underscoring the strategic importance of hashrate under geopolitical constraints.
5. Sovereign mining gains momentum as Bhutan’s Bitcoin reserves reach nearly 40% of GDP link link
In 2025, direct participation in mining by sovereign governments and state-backed funds has emerged as a new trend. The Kingdom of Bhutan has leveraged its rich hydropower resources and amassed Bitcoin reserves worth about $1.3 billion, nearly 40% of the country's GDP, according to June data. In December, Bhutan signed a memorandum of understanding with cryptocurrency market maker Cumberland to further develop its digital asset infrastructure.
Outside of Bhutan, the United Arab Emirates government holds approximately 6,300 BTC through its controlling entity, Citadel Mining. Countries such as Ethiopia and Argentina are also attracting global mining companies through partnerships with state-owned power companies and using the “energy for hashrate” model to increase their national reserves.
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6. Stablecoin Giant Tether expands deeper into mining, supports decentralized pool OCEAN link link
In 2025, Tether, the world's largest stablecoin issuer, significantly accelerated its expansion into the mining field. Tether has invested in renewable energy mining facilities in Uruguay and El Salvador, and in April announced it would introduce hashrate to its decentralized mining pool protocol OCEAN to reduce centralization risks.
On the capital side, Northern Data, which is partly owned by Tether, sold its mining subsidiary Peak Mining for $200 million in November and shifted its focus to operating AI data centers. Leveraging its large dollar reserves, Tether is increasingly positioning itself as a major investor and builder of the world's mining infrastructure.
7. Bitmain S19/S21 series drops to “fire sale” level, mining hardware price war intensifies link
By late 2025, the mining hardware market was in a downturn due to Bitcoin price fluctuations and declining revenues following the halving. Industry leader Bitmain has slashed prices, with internal estimates for December showing older models like the S19 XP Hydro dropping to $3-4 per TH/s. Even the new S21 series has dropped to $7-8 per TH/s and is clearly in a clearing phase.
Meanwhile, Bitdeer launched its self-developed SEALMINER machine, and Canaan announced the Avalon Mini home mining series. The competition is increasingly moving away from raw hashrate to energy efficiency (J/TH) and customization suited to AI data center environments.
8. A $1.1 billion scandal was discovered in Malaysia, prompting a global crackdown on illegal mining and electricity theft. link
In 2025, authorities around the world have increased their crackdown on illegal power theft mining operations. Malaysian authorities formed a joint air and land countermeasures force using drones and announced in December that they had seized approximately 14,000 illegal mining machines. These activities have cost the nation's power grid an estimated $1.1 billion since 2020.
Similar crackdowns have been launched in Libya, Thailand and Russia, targeting illegal power theft in factories and tampering with residential meters. Compliance with electricity usage regulations and grid stability are fundamental requirements for the mining industry.
9. Official miners maintain HODL strategy as MARA’s Bitcoin holdings exceed 50,000 BTC link link
Despite significant operating cash flow pressure in 2025, major listed mining companies continued to stick to their hold-for-the-long-term (HODL) strategies. In August, MARA Holdings (formerly Marathon Digital) announced that its Bitcoin holdings exceeded 50,000 BTC (equivalent to billions of dollars). CleanSpark and Hyperscale Data have adopted a similar strategy, with the latter's Bitcoin vaults accounting for 83% of its market capitalization.
Rather than selling mined BTC to cover electricity costs, these companies raise liquidity through convertible bonds, equity issues, or Bitcoin-backed financings, effectively turning mining stocks into high-beta substitutes for Bitcoin exposure.
10. Icomtech pyramid scheme promoter sentenced to prison emphasizes compliance warning link
In December 2025, the branded cryptocurrency mining Ponzi scheme IcomTech reached its final verdict. Senior promoter Magdaleno Mendoza was sentenced to six years in prison and ordered to forfeit his assets for promising investors high profits on daily mining and trading.
The ruling reflects a broader global trend towards tighter mining regulations. From U.S. Securities and Exchange Commission oversight of so-called green energy hashrate projects to cross-border tax enforcement by multiple jurisdictions, the mining industry is clearly transitioning from a period of unchecked growth to an era of comprehensive compliance.
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