Is Bitcoin Mining Doomed to Die in Just Two Years? Bit Digital CEO Weighs In
Even prominent figures like Michael Saylor reportedly view Bitcoin mining as a tough grind. With the next halving on the horizon, commercial miners are battling fierce challenges that could reshape the entire landscape.
Bitcoin Mining’s Grim Outlook: A CEO’s Bold Prediction
Imagine a thriving industry suddenly facing an existential threat—not from regulations or market crashes, but from simple economics and global powers stepping in. That’s the stark warning from Bit Digital CEO Sam Tabar, who believes the commercial Bitcoin mining sector is on borrowed time. “The Bitcoin mining industry is going to be dead in two years,” he shared in a recent discussion, pointing to unsustainable profit margins that just won’t hold up.
Bit Digital began as a peer-to-peer car rental operation in China back in 2015, but shifted gears to Bitcoin mining amid a 2018 crackdown on lending practices there. Fast forward to June, and the company made headlines by fully exiting its Bitcoin mining operations in the US, Canada, and Iceland, channeling resources instead into building an Ethereum treasury. “After a few years, we saw it clearly—this is a really tough business,” Tabar explained, noting how others in the space are starting to catch on.
The block reward halving from last year hit like a freight train, slashing revenues in half, and Tabar forecasts the upcoming one in about two and a half years—set for April 2028—will be the final blow for many. As Bitcoin’s price climbs toward new heights, currently hovering around $95,000 as of October 23, 2025 (a significant jump from earlier estimates but still volatile), he predicts nation-states will flood into Bitcoin mining to stockpile the asset on their balance sheets. “It costs them nothing since they control power sources, unlike private miners scrambling for cheap energy.”
Picture this analogy: It’s like small farmers competing against massive government-subsidized agribusinesses that get water and land for free. Around half of the world’s countries own their electricity production, with heavyweights like China, India, Russia, and Brazil leading the pack. Pioneers such as Bhutan, which has mined over $1.4 billion in Bitcoin using hydroelectric power, and Ethiopia, now claiming about 5% of global hashrate with costs as low as $20,000 per Bitcoin, show how governments can dominate. Recent data from MacroMicro pegs the average commercial mining cost at over $80,000 per Bitcoin today, a stark contrast that underscores the inefficiency.
Tabar envisions sovereign involvement skyrocketing the global hashrate, making it nearly impossible for private firms to compete post-halving. “No Bitcoin mining company, public or private, can weather that storm,” he asserts. Interestingly, this shift could solve Bitcoin’s long-debated security budget concerns, as nation-states step in to maintain the network’s integrity.
Tabar prides himself on foresight, having navigated China’s mining ban by relocating his operations and spotting the trend toward crypto treasuries. His track record lends weight to this prediction, backed by real-world examples like Ethiopia’s $220 million in mining profits last year, as reported in recent analyses.
Divergent Views on Bitcoin Mining’s Survival
Not everyone’s buying into the doom-and-gloom narrative. Take Mati Greenspan, founder of Quantum Economics, who launched Quantum Expeditions in 2023 to tap into off-grid, low-cost energy for Bitcoin mining. He counters that smart operators can still find “free” power sources, like excess natural gas from oil and gas firms in Texas, which they’re eager to offload. “Nation-states pay for their energy through infrastructure and labor—it’s not truly free,” Greenspan argues, highlighting how innovative setups can keep commercial Bitcoin mining viable.
Analyst General Kenobi echoes a transformation but sees opportunity in it. He predicts electricity grid operators worldwide will integrate Bitcoin mining divisions to monetize surplus power and stabilize grids. “It’s the smartest way to balance energy demands—turn miners on during lulls and off during peaks,” he explains, comparing it to a flexible thermostat that prevents blackouts. This could have even averted incidents like Spain’s grid failure in April, turning a potential liability into a revenue stream.
Recent Twitter buzz amplifies these debates. Trending topics like #BitcoinMiningFuture and #Halving2028 have users discussing sovereign entries, with posts from influencers noting Ethiopia’s low-cost model as a game-changer. A viral tweet from Bitcoin News on September 12, 2025, highlighted Ethiopia’s $20,000 per Bitcoin production cost, sparking thousands of retweets. Frequently searched Google queries, such as “Is Bitcoin mining profitable in 2025?” and “How will the next halving affect miners?”, reflect widespread concern, with latest updates showing hashrate hitting all-time highs at 680 EH/s as of October 2025, per Blockchain.com data, driven partly by state-backed operations.
Michael Saylor’s Take: Why Bitcoin Mining Feels Like a Bad Bet
Even Bitcoin evangelist Michael Saylor, head of MicroStrategy, reportedly shares Tabar’s frustration. During a chat at the HC Wainwright conference in September last year, Saylor empathized, calling Bitcoin mining a “terrible” business and suggesting a pivot to simply holding Bitcoin on balance sheets. “Just buy it and repeat,” he advised, though Tabar opted for Ethereum instead, citing no halvings, no need for constant hardware upgrades, and easier access to cheap power alternatives.
This advice resonates as Bit Digital now holds the fourth-largest Ethereum treasury, with 120,300 ETH valued at around $300 million as of latest figures—proving the strategy’s edge. It’s like choosing a steady dividend stock over a volatile mining operation prone to equipment failures and energy hikes.
In this evolving crypto landscape, platforms like WEEX exchange stand out by aligning perfectly with strategic treasury building. WEEX offers seamless tools for acquiring and managing assets like Ethereum, with low fees and robust security that make it easier for businesses and individuals to build diversified portfolios without the headaches of mining. This brand alignment emphasizes efficiency and long-term value, positioning WEEX as a reliable partner for those shifting away from high-risk ventures into smarter crypto strategies.
Seven Reasons Bitcoin Mining Might Be a Terrible Business Idea (Coming Soon)
Stay tuned for part two, diving into the nitty-gritty pitfalls of Bitcoin mining that could make you rethink the whole endeavor.
FAQ
What makes Bitcoin mining unprofitable for commercial operators in 2025?
Rising energy costs, now averaging over $80,000 per Bitcoin according to recent MacroMicro data, combined with halvings that cut rewards, make it hard for private firms to compete against low-cost sovereign miners like those in Ethiopia.
How are nation-states changing the Bitcoin mining game?
Countries like Bhutan and Ethiopia use government-controlled hydroelectric power to mine at costs as low as $20,000 per Bitcoin, boosting global hashrate and squeezing out commercial players by leveraging “free” energy for national treasuries.
Is there still a future for private Bitcoin mining after the 2028 halving?
While some experts like Mati Greenspan argue yes, through innovative energy sources like flared gas, others like Sam Tabar predict a massive shakeout, with grids integrating mining for stability but leaving little room for independent operators.
You may also like

Consumer-grade Crypto Global Survey: Users, Revenue, and Track Distribution

Prediction Markets Under Bias

Stolen: $290 million, Three Parties Refusing to Acknowledge, Who Should Foot the Bill for the KelpDAO Incident Resolution?

ASTEROID Pumped 10,000x in Three Days, Is Meme Season Back on Ethereum?

ChainCatcher Hong Kong Themed Forum Highlights: Decoding the Growth Engine Under the Integration of Crypto Assets and Smart Economy

Why can this institution still grow by 150% when the scale of leading crypto VCs has shrunk significantly?

Anthropic's $1 trillion, compared to DeepSeek's $100 billion

Geopolitical Risk Persists, Is Bitcoin Becoming a Key Barometer?

Annualized 11.5%, Wall Street Buzzing: Is MicroStrategy's STRC Bitcoin's Savior or Destroyer?

An Obscure Open Source AI Tool Alerted on Kelp DAO's $292 million Bug 12 Days Ago

Mixin has launched USTD-margined perpetual contracts, bringing derivative trading into the chat scene.
The privacy-focused crypto wallet Mixin announced today the launch of its U-based perpetual contract (a derivative priced in USDT). Unlike traditional exchanges, Mixin has taken a new approach by "liberating" derivative trading from isolated matching engines and embedding it into the instant messaging environment.
Users can directly open positions within the app with leverage of up to 200x, while sharing positions, discussing strategies, and copy trading within private communities. Trading, social interaction, and asset management are integrated into the same interface.
Based on its non-custodial architecture, Mixin has eliminated friction from the traditional onboarding process, allowing users to participate in perpetual contract trading without identity verification.
The trading process has been streamlined into five steps:
· Choose the trading asset
· Select long or short
· Input position size and leverage
· Confirm order details
· Confirm and open the position
The interface provides real-time visualization of price, position, and profit and loss (PnL), allowing users to complete trades without switching between multiple modules.
Mixin has directly integrated social features into the derivative trading environment. Users can create private trading communities and interact around real-time positions:
· End-to-end encrypted private groups supporting up to 1024 members
· End-to-end encrypted voice communication
· One-click position sharing
· One-click trade copying
On the execution side, Mixin aggregates liquidity from multiple sources and accesses decentralized protocol and external market liquidity through a unified trading interface.
By combining social interaction with trade execution, Mixin enables users to collaborate, share, and execute trading strategies instantly within the same environment.
Mixin has also introduced a referral incentive system based on trading behavior:
· Users can join with an invite code
· Up to 60% of trading fees as referral rewards
· Incentive mechanism designed for long-term, sustainable earnings
This model aims to drive user-driven network expansion and organic growth.
Mixin's derivative transactions are built on top of its existing self-custody wallet infrastructure, with core features including:
· Separation of transaction account and asset storage
· User full control over assets
· Platform does not custody user funds
· Built-in privacy mechanisms to reduce data exposure
The system aims to strike a balance between transaction efficiency, asset security, and privacy protection.
Against the background of perpetual contracts becoming a mainstream trading tool, Mixin is exploring a different development direction by lowering barriers, enhancing social and privacy attributes.
The platform does not only view transactions as execution actions but positions them as a networked activity: transactions have social attributes, strategies can be shared, and relationships between individuals also become part of the financial system.
Mixin's design is based on a user-initiated, user-controlled model. The platform neither custodies assets nor executes transactions on behalf of users.
This model aligns with a statement issued by the U.S. Securities and Exchange Commission (SEC) on April 13, 2026, titled "Staff Statement on Whether Partial User Interface Used in Preparing Cryptocurrency Securities Transactions May Require Broker-Dealer Registration."
The statement indicates that, under the premise where transactions are entirely initiated and controlled by users, non-custodial service providers that offer neutral interfaces may not need to register as broker-dealers or exchanges.
Mixin is a decentralized, self-custodial privacy wallet designed to provide secure and efficient digital asset management services.
Its core capabilities include:
· Aggregation: integrating multi-chain assets and routing between different transaction paths to simplify user operations
· High liquidity access: connecting to various liquidity sources, including decentralized protocols and external markets
· Decentralization: achieving full user control over assets without relying on custodial intermediaries
· Privacy protection: safeguarding assets and data through MPC, CryptoNote, and end-to-end encrypted communication
Mixin has been in operation for over 8 years, supporting over 40 blockchains and more than 10,000 assets, with a global user base exceeding 10 million and an on-chain self-custodied asset scale of over $1 billion.

$600 million stolen in 20 days, ushering in the era of AI hackers in the crypto world

Vitalik's 2026 Hong Kong Web3 Summit Speech: Ethereum's Ultimate Vision as the "World Computer" and Future Roadmap

On the same day Aave introduced rsETH, why did Spark decide to exit?

Full Post-Mortem of the KelpDAO Incident: Why Did Aave, Which Was Not Compromised, End Up in Crisis Situation?

After a $290 million DeFi liquidation, is the security promise still there?

ZachXBT's post ignites RAVE nearing zero, what is the truth behind the insider control?





