Bitcoin Hashrate Hits New High, But Will Rising Costs and Tariffs Derail Growth?

The Bitcoin mining industry is becoming increasingly competitive as the network’s hashrate reaches an all-time high (ATH). At the end of March 2025, Bitcoin’s hashrate hit 850 million TH/s.

However, alongside this impressive growth, the industry is struggling with rising production costs and new tariff barriers, particularly in the US. These factors are putting significant pressure on mining companies and could reshape the sector’s future.

Hashrate Surges, Mining Costs Soar

Bitcoin’s hashrate measures the total computing power used by miners to secure the network and validate transactions. It is expressed in terahashes per second (TH/s), representing the number of hash calculations the network performs every second.

According to Blockchain.com, Bitcoin’s hashrate surpassed 850 million TH/s in March. This increase reflects a rise in miners joining the network and growing confidence in Bitcoin’s value and security.

Bitcoin Hashrate. Source: Blockchain.com

“Each time the network gets stronger, Bitcoin becomes harder to attack, harder to ignore, and more justified in commanding a higher valuation. This isn’t just code. It’s economic gravity. Bitcoin has become the most secure monetary network humanity has ever seen. And it’s only getting stronger.” — Thomas Jeegers, CFO & COO of Relai commented.

Despite this surge in hashrate, mining profits are not rising accordingly. According to a report from Macromicro, the cost of mining one Bitcoin has doubled since early 2024, now reaching $87,000. The main drivers behind this increase are rising electricity prices and the high operational costs of specialized mining hardware (ASICs).

With Bitcoin’s price fluctuating, many mining companies risk operating at a loss unless they optimize their efficiency. This challenge is particularly severe for smaller miners, who lack the scale advantages or access to cheap electricity that larger firms enjoy.

Tariff Challenges and Dependence on Chinese Hardware

Another major obstacle for Bitcoin miners is trade restrictions, particularly in the US. According to CoinMetrics, ASIC miners produced by Bitmain, a Chinese company, account for approximately 59%–76% of Bitcoin’s total hashrate.

Estimated Dominance by ASIC Mainer. Source: CoinMetrics.

Bitmain has long been a dominant player in mining hardware, with popular models like the Antminer S19 and S21 known for their high efficiency. However, in early 2025, some US mining companies experienced delays in receiving Bitmain shipments due to tighter customs controls and new tariffs on Chinese imports.

“With Bitmain accounting for a majority of Bitcoin’s network hashrate, reliance on a single manufacturer, despite having distributed supply chains, presents a potential risk. Since Bitmain is primarily based in China, its dominance highlights how geopolitical dependencies can affect the stability of mining operations,” CoinMetrics reported.

These tariffs are not new. According to SCMP, the US has imposed duties of up to 27.6% on imported mining equipment from China since 2018.

However, recent measures indicate increasing regulatory scrutiny and trade pressures, further raising import costs for mining hardware. This inflates operational expenses for US-based miners and disrupts supply chains, limiting their ability to scale as global hashrate rises.

Recently, Hut 8 Corp., a Bitcoin mining and high-performance computing infrastructure firm, partnered with Eric Trump and Donald Trump Jr. to establish American Bitcoin Corp.

The company aims to become the largest and most efficient pure-play Bitcoin mining operation globally while building a strong strategic Bitcoin reserve. This move highlights the increasing interest from US institutional investors in the competitive mining industry.