October BTC Mining: High Costs, Tight Margins, and AI Transformation

In October 2025, the global top-tier Bitcoin miners slightly increased production, overall costs, and network difficulty reached new all-time highs. At the same time, several mining firms began shifting their strategic focus toward AI-related data infrastructure.

This shift aimed to diversify revenue streams and reduce dependence on Bitcoin price volatility.

Slight Drop in Bitcoin Production, Growing Trend of BTC Sales

Compared to September, overall Bitcoin (BTC) mining output declined slightly, primarily due to higher mining difficulty and unstable power supplies across several North American regions.

Specifically, Cango Inc. mined approximately 602.6 BTC in October, bringing its total Bitcoin holdings to 6,412.6 BTC. CleanSpark reported a similar output to September, producing 612 BTC during the month.

Riot Platforms mined 437 BTC, down from 445 BTC in the previous month. Its total Bitcoin holdings reached 19,324 BTC, up 37 BTC from the last month. However, given the production volume, the data suggest that the company likely sold part of its mined Bitcoin to manage its cash flow.

BitFuFu produced 253 BTC, bringing total holdings to 1,953 BTC, suggesting potential BTC liquidation to optimize capital. 

Among smaller miners, DMG Blockchain mined 23 BTC, raising its total holdings to 359 BTC, while LM Funding America maintained stable production levels. Despite their modest scale, these smaller entities help maintain Bitcoin’s decentralization by distributing global hashrate more evenly.

October Bitcoin mining output by some public companies. Source: BeInCrypto

Marathon Digital Holdings (MARA) and Cipher Mining have not yet disclosed their October Bitcoin production data. However, both companies released positive Q3 2025 financial results, signaling operational resilience despite a weaker September. 

Marathon maintained its industry leadership with a record-breaking $123 million profit in the third quarter of 2025. On-chain data shows that MARA’s mining address transferred 2,348 BTC (approximately $236 million) within 12 hours, likely profit-taking following Bitcoin’s recent price rally.

Cipher Mining also reported solid quarterly results with $72 million in revenue and announced a $1.4 billion high-yield bond issuance to fund a Google-linked data center project. 

Similarly, TeraWulf expects third-quarter 2025 revenue to be between $48 million and $52 million. The company raised $3.2 billion in senior secured notes to expand its US-based infrastructure. These large-scale financing moves underscore a broader industry trend. Major miners are repositioning themselves as providers of digital infrastructure, bridging Bitcoin mining with AI-driven high-performance computing (HPC).

Production Costs Hit Record High, Intensifying Industry Competition

According to MacroMicro, the average cost to produce 1 BTC surged to $114,842, marking the highest level in history. Meanwhile, Bitcoin’s mining difficulty rose by 6.31% to 155.97T, setting a new all-time high for the network. With Bitcoin’s market price hovering around $102,000, the widening gap between market value and breakeven cost is squeezing profit margins, especially for smaller operators.

Average production cost per BTC. Source: MacroMicro

In response, miners are being compelled to enhance energy efficiency, invest in next-generation ASICs, and scale their operations to safeguard profitability. Industry leaders such as Cipher, TeraWulf, and CleanSpark are experimenting with hybrid models combining Bitcoin mining and HPC for AI workloads, a strategy increasingly seen as inevitable amid mounting cost pressures.

Simultaneously, governments and sovereign investment funds are entering the Bitcoin mining sector to enhance their control over strategic energy and data assets. This growing “nationalization” of mining could reshape the global power structure, as some nations leverage surplus energy resources to mine Bitcoin more efficiently, thereby reducing reliance on private-sector operators.

October 2025 marks the beginning of a profound structural transformation within the Bitcoin mining industry. Only firms with strong technology capabilities, financial stability, and long-term vision are likely to endure.

As energy costs and mining difficulty continue to rise, 2026 could see the most significant wave of mergers and consolidations in the industry’s history, paving the way for a global hybrid model integrating Bitcoin mining with AI data computation.