North American Bitcoin Production Declines
December data indicates that North American operations mined 35% of all Bitcoin blocks, a decrease from over 40% in January 2025. This decline is attributed to computing resources shifting toward artificial intelligence projects. BlocksBridge Consulting tracked steady decreases for Foundry USA, MARA Pool, and Luxor Technologies throughout the year.
Presidential Advocacy and Domestic Mining Initiatives
During his 2024 campaign, President Donald Trump advocated for the domestic production of all future Bitcoin. His sons launched American Bitcoin in March, with Miami-based Hut 8 holding 80% ownership. A video released in November by Eric Trump showcased the Texas facility, where he claimed operations produce approximately 2% of the worldwide Bitcoin supply.
Impact of Energy Costs on Mining Profitability
Energy cost adjustments have resulted in record-low mining profitability for December. JPMorgan data reveals that daily revenue per exahash per second averaged $38,700, marking a 32% decrease from the previous year. Broad increases in energy prices have significantly compressed margins for major mining operations.
The Rise of AI Services and Miner Adaptation
Multi-year transitions toward providing AI services have accelerated as cryptocurrency mining returns have deteriorated. Nick Hansen, CEO of Luxor Technology, highlighted the fiduciary responsibility of miners to evaluate AI opportunities utilizing their existing power infrastructure. The executive noted that AI demand significantly surpasses cryptocurrency mining in both scale and potential.
December announcements from Hut 8 detailed infrastructure development plans in collaboration with Anthropic, an artificial intelligence company. The firm's strategic positioning emphasizes energy infrastructure development over dedicated mining operations. Several publicly traded miners have halted hash rate growth, opting to repurpose Bitcoin mining capacity for high-performance computing applications.
Resurgence of Chinese Mining Operations
According to Wolfie Zhao, research director at BlocksBridge, expanded Chinese energy production has contributed to North America's shrinking block share. Rapid capacity increases have occurred despite China's official Bitcoin mining prohibition in 2021. The Xinjiang province continues to maintain mining activity due to its dispersed geography and abundant fossil fuel power sources.
Zhao explained that mining proliferation signifies a nation's energy infrastructure capacity. Increased Chinese energy availability allows for greater block competition, positioning energy as a residual buyer. Bitmain, which dominates approximately 80% of the global mining hardware market, has increased its self-mining activities following a weakening in equipment demand.
Revenue pressures have compelled the Beijing-based company to deploy its inventory across locations in the U.S., the Middle East, and Central Asia. Taiwan Semiconductor Manufacturing Company might reduce future wafer allocations if Bitmain scales back its production. Zhao noted that equipment oversupply persists as purchasing volume declines.