- U.S. miners earned $2B in Q1 2025 with gross margins rising from 50% to 53%, says JPMorgan.
- IREN reported the highest gross profit with the lowest cost per bitcoin at $36,400.
- MARA led bitcoin production for the ninth straight quarter despite highest cost per coin.
The first quarter of 2025 stands out as one of the most successful periods for U.S.-listed bitcoin miners, according to a research report from JPMorgan. Analysts Reginald Smith and Charles Pearce confirmed that four out of five major mining companies achieved record revenue and profits, reflecting a strong recovery and high bitcoin prices. The sector’s momentum has continued from late 2024 showing significant growth in both margins and gross profits.
JPMorgan estimates that these bitcoin mining companies earned about $2.0 billion in gross profit for the quarter, an increase from $1.7 billion in Q4 2024. Gross margins increased to 53% compared with the earlier 50%, showing better operational performance and returns on mining activity. The price of Bitcoin, which is approximately $105,700, contributed to these robust results.
The report tracked five key companies including MARA Holdings, IREN, CleanSpark, Riot Platforms, and Cipher Mining. Both contributed differently to the industry’s solid year-to-date performance with some doing better in terms of output and others in terms of profitability.
MARA Maintains Output Lead, IREN Sets New Profit Benchmark
MARA Holdings led the sector in bitcoin production for the ninth consecutive quarter. The company mined more bitcoin than any other in JPMorgan’s coverage, highlighting its ongoing dominance in output. Nevertheless, MARA incurred the highest cost per bitcoin as well, estimating an all-in cash expense of $72,600 per coin.
In contrast, IREN emerged as the leader in profitability for the first time among the group. IREN had the lowest all-in cash cost per coin of approximately $36,400. This cost-benefit enabled IREN to register the highest gross profit within the group, which was a new performance standard in the industry. The company had a disciplined cost management system, which was essential in increasing its margins and improving its financial standing.
CleanSpark, another top BTC miner, demonstrated capital discipline by not raising new equity during the quarter. The five mining firms combined raised only $310 million in equity, a significant reduction from the $1.3 billion raised in the final quarter of 2024. This is an indication of the industry’s tightening capital plans as firms adapt to the market environment and turn to internal financing.
Rising Power Expenses, JPMorgan Stays Bullish on Miners
The Bitcoin mining industry is still very energy-intensive, and the miners collectively used $1.8 billion on electricity during the first quarter of 2025. This value increased by $50 million compared to the previous quarter of the year indicating that the control of operational costs remains a challenge as companies increase their production.
The JPMorgan report also provided the bank’s predictions for the sector. The bank has given overweight ratings to CleanSpark, IREN, and Riot Platforms, while maintaining neutral ratings on Cipher Mining and MARA Holdings. These analyst ratings indicate confidence in some miners’ ability to balance growth and cost-efficiency.
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