The world of blockchain is never short on trends. From DeFi and IPFS to Polkadot and the recent OKEx withdrawal freeze, new narratives constantly emerge—each fleeting like "autumn’s first milk tea"—gaining sudden popularity before vanishing under the next wave of excitement.
Amid this whirlwind of innovation, Bitcoin mining—the original engine of the crypto economy—has quietly faded into the background. Yet, it remains active. Recently, a miner posed a simple but telling question in a community chat: “Where should I place my thousands of mining rigs?” The query served as a timely reminder: mining hasn’t disappeared. As the dry season approaches, miners are relocating their equipment, and behind the scenes, the mining industry is undergoing a quiet but profound transformation.
This article explores the current state of Bitcoin mining farms, the challenges they face, and what lies ahead for one of crypto’s most foundational sectors.
Mining Farms Still Struggle With Underutilization
After the 2017 bull run, a surge of mining farms were built across China, particularly in hydro-rich regions like Sichuan. This rapid expansion led to a significant oversupply of hosting capacity. Today, many facilities sit partially or entirely empty.
Compounding the issue, miners have faced a series of setbacks: the March 2020 market crash (commonly known as "Black Thursday"), the 2020 Bitcoin halving, and prolonged bearish sentiment. These events caused widespread machine shutdowns and eroded confidence.
With mining revenue halved post-halving and electricity costs rising during the dry season, many small-scale miners exited the space. Meanwhile, retail participation dwindled. The result? Idle farms with no rigs to host.
Even secondhand machine dealers are struggling. What used to be a bustling trade in places like Shenzhen’s Huaqiangbei electronics market has now moved underground—literally and figuratively—into private WeChat groups and朋友圈 (social media feeds). Physical storefronts are closing as sellers rely on word-of-mouth and direct messaging to offload inventory.
During the wet season, mining farms aggressively compete for clients, slashing hosting prices to below $0.02 per kWh in some cases. Still, occupancy remains inconsistent. As the dry season begins and miners migrate from hydropower to thermal power regions like Inner Mongolia, many farms continue to operate below capacity—especially those lacking reliable power supply or competitive pricing.
Will Mass Farm Closures Happen? It Depends on Bitcoin’s Price
According to Li Peicai, Vice Chairman of the 100P Hashrate Club and founder of Wakyi Technology, several key trends define this year’s dry season:
- Mining rigs consuming over 60 watts per terahash are likely to be shut down.
- New ASIC production is limited, and acquisition costs remain high.
- International mining expansion is accelerating—especially in North America and Europe—where large-scale farms are being built, signaling a global shift in mining geography.
“Next year, many mining farms will disappear,” warns Lao Peng, a Sichuan-based farm operator. But he clarifies: it’s not just oversupply driving this.
“Three factors are at play,” he explains:
- Expired power contracts
- Rising electricity prices
- The disappearance of surplus hydropower
Historically, Sichuan’s remote regions produced more hydroelectric power than local grids could absorb—creating “stranded” or “abandoned” electricity that miners could use at ultra-low rates. But with new ultra-high-voltage transmission lines connecting Sichuan to eastern provinces, that surplus is now being sold elsewhere.
Additionally, local governments are establishing “energy consumption parks” that prioritize industrial over mining loads. This shift threatens the survival of non-compliant or less-connected mining operations.
“Big players with direct power supply deals are holding on,” Lao Peng says. “But others—especially those without strong grid relationships—are already dumping their farms.”
Gao Fei, Council Member of the 100P Hashrate Club and co-founder of Duomi Technology, echoes this view: “The fate of mining farms hinges on Bitcoin’s price.” If BTC remains above key support levels (e.g., $30,000–$40,000), older machines can stay online and farms remain viable. Otherwise, widespread shutdowns are inevitable.
Policy risks also loom large. As China tightens scrutiny on energy-intensive industries, compliance becomes a make-or-break factor for long-term sustainability.
Low Electricity Cost Is No Longer Enough
While cheap power once defined competitive advantage, today’s miners demand more.
Take Hai Ge, a seasoned miner who’s transitioning his rigs to a self-built facility in Inner Mongolia. His farm supports 80,000 amps—enough for 40,000–50,000 machines—with a total investment of around $16 million. “Every 10,000 amps costs about $2 million in infrastructure,” he explains.
For miners without capital or connections to build their own sites, third-party hosting remains essential. Bin Ge, who manages hundreds of rigs collectively owned by friends, recently transported his machines from Sichuan to Inner Mongolia. His electricity cost rose from $0.023/kWh to $0.034/kWh—still manageable, but transportation incurred losses “not quite 20%, but still significant.”
When choosing a host farm, Bin Ge emphasizes: compliance and stability matter more than price alone.
Zhang Ying, co-founder of BitKuaiChe, agrees: “In the dry season, thermal power farms must prove they can deliver 24/7 uptime. It’s not about saving one cent per kWh if you lose five days of mining due to outages.”
Wu Hui, R&D Director at Yun’er Technology, adds: “Global chip shortages mean fewer machines but more farms—intensifying competition.” In this environment, success depends on more than low tariffs. Farms must offer:
- Reliable power continuity
- Regulatory compliance
- Smart monitoring systems
- Professional operations management
Only those delivering comprehensive value will survive.
The Industry Is Maturing—Fast
Bitcoin mining is no longer a Wild West experiment. It’s evolving into a capital-intensive, highly regulated industry where operational excellence determines survival.
Farms that fail to provide secure, stable, and compliant services risk obsolescence. The era of profiting solely from cheap electricity is ending. Today’s winners are those investing in infrastructure resilience, legal frameworks, and intelligent management platforms.
As global miners expand overseas and institutional players enter the space, the bar for professionalism continues to rise.
Frequently Asked Questions (FAQ)
Q: Why are so many mining farms closing?
A: Multiple factors contribute—rising electricity costs, lack of surplus hydropower in regions like Sichuan, expiring contracts, and weak Bitcoin prices that make older machines unprofitable.
Q: Is Bitcoin mining still profitable in 2025?
A: Yes—for efficient operators using modern hardware and low-cost power. Profitability depends heavily on electricity rates, machine efficiency, and BTC’s market price.
Q: What happens to miners during the dry season?
A: Miners migrate from hydropower-dependent regions (like Sichuan) to thermal power areas (like Inner Mongolia) where electricity is more consistent but slightly more expensive.
Q: Can individuals still profit from mining?
A: It’s challenging for individuals without scale or cheap power access. Most small miners now join pools or invest in hosted solutions rather than manage hardware themselves.
Q: How important is uptime for mining farms?
A: Critical. Even brief outages can erase cost advantages from low electricity rates. Continuous operation ensures steady revenue accrual.
Q: What role does regulation play in mining farm sustainability?
A: Increasingly vital. Farms with transparent operations, legal power agreements, and environmental compliance are more likely to survive policy crackdowns.
The days when anyone could set up a tent in a riverbank village and plug in a few Antminers are over. The future belongs to professionalized, resilient, and globally integrated operations. For Bitcoin mining farms, adaptation isn’t optional—it’s existential.