(Bloomberg) – Donald Trump promised last year to hero Bitcoin mining industry in the United States. However, as American miners began to release the first quarterly profit reports since Trump’s return to the White House, it is clear that the group is struggling.
Most of them read from Bloomberg
It is expected that seven of the eight largest miners traded to the public who are in the United States will be a loss when they report results in the first quarter, according to analysts estimated by Bloomberg. Financial struggles come even after Bitcoin reached a record number exceeding $ 109,000 in January, and its average price per quarter was about 75 % of what it was in the first quarter of 2024.
Increased competition and definitions on companies that have witnessed pressure on profit margins and increased certainty about expanding operations. The decline in the broader securities market has also prompted Trump’s electoral victory also with more miners to return to debt financing instead of increasing cash from stock sales.
The difficulty of mining, a measure of computing power used at Bitcoin age, has destroyed record levels in the past months, indicating more competition for the fixed amount of bitcoin that was periodically released by the original Blockchain. Meanwhile, mining revenues decreased with high energy prices in some states in the United States during the same time period.
“This will be an interesting quarter for Bitcoin workers’ workers and possibly difficult over the past few months.” “Claire Street. “We will see the margin pressure and low revenue from bitcoin mining due to the high global difficulty rate.”
The amended net income for workers in the eight of the United States decreased by about $ 1.3 billion in the first quarter of the same period in the previous year, according to analysts estimated by Bloomberg. It is estimated that the combined group picked a loss of $ 190 million, compared to a net income of $ 1.1 billion in the first quarter of 2024. Among Cleanspark Inc. They are the only mines that analysts expect a profit in the last quarter.
Riot Platforms Inc. is expected to do. It is one of the largest miners in the United States with revenue, by reporting a quarterly loss and revenue declining later on Thursday, according to analysts’ estimates.
The fierce competition is partially due to the deployment of Bitcoin mining machines that rushed to purchase in late 2024 when Bitcoin prices rose thanks to Trump’s supportive position. Such machines are specialized computers that are mostly manufactured in Asia, which are a great cost of mining operations with companies that collect billions of dollars to perform purchases.
The more computing capacity that mine workers can create, the more likely to be the first to have successfully processing a block of data on the Bitcoin network and defeating the rewards in the form of the distinctive symbol.
“When Bitcoin started gathering in November, we haven’t seen an immediate step corresponding to a much higher level of global retail, but we see that now,” Dobson said. Retail indicates an indication of the amount of computing energy used for cryptocurrency technology.
Ethan Vera, CEO of Operations at Lux Technology, said that growth in international mining operations, including those in Russia and China, has increased competition.
The definitions are set on machines, some of which are manufactured in Malaysia, to see much higher levels. “If this increases more, it will be very harmful, and the definition files and growth expectations can be obstructed by it,” Vera said. “With a tariff, I think everyone outside the United States will benefit from this.”
Cheving miners included in the United States face more uncertainty about their expansion plans due to the increasing cost of machines and irreplaceable tariff policy in the near future. American miners have also witnessed delays in the shipment due to the severe inspection on the border in early this year through the black list of the US Department of Commerce of the largest supplier of artificial plant’s artificial latthery in Beijing, based in Beijing, in January.
“The management teams are hesitant to develop a multi -year strategy based on what the customs tariffs seem to be today when they realize that we can have a completely different conversation about the form of definitions,” Dobson said.
Bitcoin miners also have more difficulty in collecting capital from the stock market, which was the main source of financing most public miners. The intense energy mining process requires large amounts of capital to buy machines, build databases, and pay electricity bills that can be tens of millions of dollars.
Public mining companies have used offers on the market to raise billions of dollars, but some turn into debt tools such as fixed -income securities or credit facilities for liquidity. Mara Holdings Inc. The Riot and Cleanspark are convertible bonds with the last two in preparing and expanding credit facilities, respectively.
“I think the major public companies do not want to sell shares in the current market, as this is an expensive way for them to raise capital, while discount tools are just low -cost capital,” said Vera.
Bitcoin workers have been dealing with another blow since last April. The code updated Bitcoin, which was the main revenue flow for workers, was 50 %. The programmed event is designed in advance to maintain the maximum steel of 21 million bitcoin by reducing this offer every four years.
While Trump promised to make all bitcoin currencies in the United States, miners were mainly struggling with the side effects of his policies, as definitions wandered at the cost of mining platforms while stimulating mining operations abroad, and selling the stock market that affected their ability to raise capital.
“With regard to the definitions, I do not think that Trump has Bitcoin mining as his first priority to focus on it,” Vera said. “The trade war, for him, is the most important thing.”
Most of them read from Bloomberg Business Week
© 2025 Bloomberg LP
