Riot Platforms Leads Bitcoin Mining Surge Amid Industry Shifts and Challenges

Bitcoin Mining Industry in Transition – Riot Outpaces Competitors

Riot Platforms has reported a record annual revenue of $647.4 million for 2025, marking a 72% increase from $376.7 million in the previous year. This surge in revenue is primarily attributed to a rise of $255.3 million in Bitcoin mining earnings, which reached $576.3 million in 2025, supported by a higher operational hash rate and an increased average Bitcoin price.

Throughout the year, Riot produced 5,686 Bitcoin, up from 4,828 BTC in 2024. However, the average cost to mine a Bitcoin rose to $49,645, compared to $32,216 in 2024, largely due to a 47% increase in the global network hash rate, which elevated mining difficulty. Despite these record figures, Riot reported a net loss of $663 million due to accounting adjustments and changes in the book value of its Bitcoin holdings, with adjusted EBITDA at $13 million.

“Riot's shift towards artificial intelligence and high-performance computing could justify a valuation of up to $21 billion,” stated activist investor Starboard Value, urging the miner to accelerate its transformation.

Other companies like Hive, Hut 8, TeraWulf, and Iren are also transitioning their mining facilities and power capacities into data center operations. However, TeraWulf recently fell short of expectations, reporting quarterly revenue of $35.8 million, down from $50.6 million in the previous quarter. MARA Holdings reported a more significant loss, with a net loss of $1.71 billion for the fourth quarter, compared to a net profit of $528 million a year earlier.

Core Scientific also missed expectations, reporting $79.8 million in revenue instead of the anticipated $122.08 million. The company clarified that Bitcoin mining is essentially winding down and will only continue to meet minimum electricity procurement requirements, with sites being converted into colocation data centers for AI and high-performance computing.

Thanks to substantial inflows into US spot BTC ETFs, Bitcoin has managed to maintain remarkable stability.

Key Takeaways:

• Riot Platforms reported a record revenue of $647.4 million for 2025.
• Average Bitcoin mining costs increased to $49,645.
• Riot experienced a net loss of $663 million despite record earnings.

MARA Holdings Considers Selling Bitcoin Holdings

MARA Holdings is contemplating the sale of its Bitcoin holdings, as revealed in documents submitted to the SEC. The company aims to pivot its business model towards artificial intelligence and high-performance computing (HPC), necessitating the sale of Bitcoin to finance various projects.

This marks a significant shift for MARA, which had previously maintained a strict "HODL" strategy, viewing Bitcoin as a long-term investment. In the second half of last year, the company began selling its Bitcoin holdings, having taken on $850 million in new debt intended for cryptocurrency investments.

“The shift towards AI and HPC applications aligns with the recent trend in the crypto mining industry, where several major players have sold Bitcoin holdings to advance their AI business,” noted industry analysts.

As the volatility of Bitcoin mining revenues continues to rise, companies are seeking more predictable income streams through AI and HPC services. The average cost to mine a Bitcoin has surged to $49,645, up from $32,216 in 2024.

Key Takeaways:

• MARA Holdings is considering selling its Bitcoin holdings to finance new projects.
• The company has shifted its focus towards AI and HPC applications.
• Average Bitcoin mining costs have increased significantly.

Iran's Share in Bitcoin Mining Shrinks – Risks in Crypto Economy

Iran's share of Bitcoin mining has decreased significantly, accounting for only 2-5% of the global hash rate as of early 2026, down from a peak of approximately 7.5% in 2021. Some experts even estimate the current share to be below 1%. Despite claims circulating on social media about potential disruptions due to US-Israeli attacks, industry analysts have dismissed these concerns as exaggerated.

The Bitcoin network itself has shown resilience, with the hash rate rising from about 986 EH/s on February 28 to a peak of 1.13 ZH/s on March 1, before stabilizing just below 1 ZH/s. Analysts like Wolfie Zhao from TheMinerMag have stated that any potential disruptions would be localized and not comparable to China's mining ban in 2021.

“A disruption in Iran would have no significant impact on block times and zero influence on the security of the Bitcoin network,” stated Ethan Vera, COO of Luxor Technology.

However, the broader implications of Iran's crypto economy are concerning, with Chainalysis estimating that Iran's total crypto activity reached $7.78 billion in 2025. Notably, addresses linked to the Islamic Revolutionary Guard Corps accounted for over 50% of all crypto inflows, exceeding $3 billion in the fourth quarter of 2025.

Key Takeaways:

• Iran's share of global Bitcoin mining has decreased to 2-5%.
• Concerns about disruptions due to geopolitical tensions have been deemed exaggerated.
• Iran's crypto economy is valued at $7.78 billion, with significant inflows linked to the IRGC.

Sources:

• Bitcoin: Mining-Branche im Umbruch – Riot hängt Konkurrenz ab
• Bitcoin-Mining-Riese MARA will BTC-Bestände verkaufen
• Irans Anteil am Bitcoin-Mining schrumpft – doch seine Kryptoökonomie im Wert von 7,78 Mrd. $ birgt ein anderes Risiko