Bitcoin’s Hashrate Reaches 850 Million TH/s Amid Rising Mining Costs and US Tariff Challenges

• The Bitcoin mining landscape is undergoing significant transformation as hashrate surges and mining costs escalate, presenting both opportunities and challenges for the industry.

• The Bitcoin network’s hashrate reaching 850 million TH/s is indicative of increasing miner confidence, yet soaring costs threaten profitability.

• “With Bitmain accounting for a majority of Bitcoin’s network hashrate, reliance on a single manufacturer presents a potential risk,” reported CoinMetrics.

Bitcoin’s hashrate climbs to 850 million TH/s, signaling a robust network as mining costs double, impacting profitability amid regulatory challenges.

Hashrate Surges, Mining Costs Soar

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

According to Blockchain.com, the Bitcoin hashrate surpassed 850 million TH/s in March 2025. This impressive increase showcases the growing number of miners joining the network and reflects rising 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.

Despite this surge in hashrate, mining profits have not followed suit. A recent report from Macromicro indicated that the cost of mining one Bitcoin has doubled since early 2024, now reaching $87,000. This increase is driven primarily by rising electricity prices along with high operational costs associated with specialized mining hardware (ASICs).

Given Bitcoin’s fluctuating price, many mining operations now face the risk of operating at a loss unless they can optimize their efficiency. This situation is particularly challenging for smaller miners, who often lack the scale advantages or access to cheaper electricity enjoyed by larger firms.

Tariff Challenges and Dependence on Chinese Hardware

In addition to rising operational costs, trade restrictions pose a significant challenge for Bitcoin miners, particularly in the US. According to CoinMetrics, ASIC miners produced by Bitmain—a Chinese firm—account for approximately 59%–76% of Bitcoin’s total hashrate.

Estimated Dominance by ASIC Mainer. Source: CoinMetrics.

Bitmain has historically been a dominant contributor to the mining hardware market, with its models, like the Antminer S19 and S21, being lauded for their efficiency. However, in early 2025, several US mining firms experienced shipment delays from Bitmain, a situation exacerbated by stricter 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,” reported CoinMetrics.

While these tariffs have been in place for several years, accumulating duties of up to 27.6% on imported mining equipment from China since 2018, the recent uptick in regulatory scrutiny and trade pressures has further inflated import costs. This scenario results in heightened operational expenses for US-based miners and disrupts supply lines, curtailing their capacity to scale in response to the global hashrate surge.

In a strategic move towards resilience, Hut 8 Corp., a Bitcoin mining and infrastructure firm, has formed a partnership with Eric Trump and Donald Trump Jr. to establish American Bitcoin Corp. This initiative aims to create the largest, most efficient pure-play Bitcoin mining operation globally while building a robust strategic Bitcoin reserve. Such partnerships indicate increasing institutional interest in the competitive mining space and reflect broader trends in the integration of traditional finance with cryptocurrency.

Conclusion

As Bitcoin’s hashrate continues to climb, the mining industry faces increasing operational costs and challenging trade dynamics. The future landscape will likely be shaped by how miners adapt to these challenges, advance technological efficiency, and navigate geopolitical obstacles affecting hardware procurement. Adaptation and resilience will be key for miners aiming to thrive in this evolving environment.