Bitcoin Mining Faces Rising Costs Amid Network Pressure as Firms Double-Down on Reserves

Difficulty Edges Down, but Costs Stay High

• Mining difficulty recently dropped slightly (about 0.4%) from its all-time high of ~126.9 trillion to about 126.4 trillion, offering only temporary relief to miners .
• Despite this dip, operational expenses remain elevated due to reduced post-halving block rewards and rising energy costs, squeezing profit margins.

Miners Shift Strategy to Retain BTC

• Companies like Marathon Digital (MARA) and CleanSpark (CLSK) not only maintained production but increased Bitcoin reserves in May: Marathon mined ~950 BTC and boosted treasury holdings to over 49,000 BTC, while CleanSpark added ~694 BTC, taking its reserves to ~12,500 BTC.
• This shift reflects a long-term strategy: rather than selling mined BTC immediately, firms are holding it in anticipation of future price gains.

Why It Matters for Crypto and Finance

• Operational pressure: Even minor adjustments in difficulty can significantly impact miner profitability, especially as energy costs rise.
• Strategic treasury holdings: Accumulating BTC reserves demonstrates confidence in long-term upside, turning miners into buyers—not just sellers.
• Market dynamics: Holding increases Bitcoin demand from institutional players, which could influence price appreciation if sustained.