The first quarter of 2025 brought significant shifts to the Bitcoin mining landscape, as companies adjusted to post-halving realities and rising network difficulty. While some miners managed to maintain profitability and output, others faced severe challenges, with cost inflation and strategic pivots redefining the pecking order.

Among the publicly listed Bitcoin miners, Riot Platforms emerged as the top revenue earner, pulling in $161.4 million, $142.9 million of which came from Bitcoin mining. The company mined 1,530 BTC during the quarter, putting it just behind Cango in terms of production. However, Riot wasn’t immune to the harsh economic environment. Its cost to mine each BTC nearly doubled year-over-year—from $23,034 to $43,808—highlighting the impact of April’s halving and the heightened competition on the network.

In contrast, Cango, which mined the most Bitcoin at 1,541 BTC, generated $145.2 million in revenue. Of that, $144.2 million came directly from mining. Despite this strong output, the company faced the highest mining costs in the group, averaging $70,602 per BTC, well above current market prices. This raises concerns about long-term sustainability unless Bitcoin prices rise significantly or the company reduces operational inefficiencies.

Core Scientific presented one of the more unusual financial stories of the quarter. Although its revenue declined by 55.7% to $79.5 million and its adjusted EBITDA was negative at $6.1 million, it posted a net profit of $581 million—thanks entirely to non-cash valuation gains totaling $622 million. This accounting-based boost masks the deeper operational struggles that Core Scientific continues to face. Rather than doubling down on mining, the firm is now expanding its managed services segment, including a 250MW deal with CoreWeave, expected to contribute $360 million in revenue by 2026.

Bitfarms also reported a mixed performance. While its revenue rose 33% year-over-year to $67 million, profitability declined. Its gross profit margin dropped from 63% to 43%, and the company ended the quarter with a $36 million net loss. With 1,166 BTC mined, Bitfarms ranked third in terms of production but continues to battle margin compression and rising energy costs.

Smaller players such as Hut 8 Corp and TeraWulf struggled more severely. Hut 8’s revenue fell by 58% to just $21.8 million, accompanied by a hefty $134.3 million loss. TeraWulf didn’t fare much better, reporting $34.4 million in revenue and a $61.4 million net loss. Both companies are now exploring new revenue streams, including partnerships in AI infrastructure and high-performance computing (HPC).

In terms of Bitcoin reserves, Riot Platforms led with 19,223 BTC in unrestricted holdings, far ahead of its peers. Bitfarms held 1,166 BTC, while Cipher Mining, although producing just 174 BTC in April, sold 350 BTC, reducing its total to 855 BTC—of which 379 BTC are collateralized. Cango, meanwhile, held substantial liquidity in the form of $347.4 million in cash and short-term investments.

The quarterly data illustrates the growing divide in the mining sector. Companies with lower operational costs and diversified revenue models are weathering the storm better than those reliant solely on mining. With mining profitability under pressure, strategic pivots are no longer optional—they’re a necessity.

What’s clear is that the April 2025 Bitcoin halving has dramatically changed the landscape. Mining rewards were cut in half, increasing pressure on miners to reduce costs, improve efficiency, or find alternative revenue streams. The shift is already visible: Core Scientific and Hut 8 are leaning into AI infrastructure, leveraging their existing energy and data center assets to serve high-growth markets beyond crypto.

As Bitcoin continues to evolve, so too will the businesses built around it. The first quarter of 2025 may be remembered not just for high costs and squeezed margins—but as the beginning of a broader transformation within the Bitcoin mining industry.