Bitcoin (BTC) Mining is Alarming: Here’s Why and Future Prospects

Cryptocurrency analysis company Alphractal evaluated the current situation in the Bitcoin mining industry in its latest report.

According to the report, although the Bitcoin price remains high in 2025, the total market value of mining companies has fallen extremely sharply. The total value of the sector has decreased by 53%, from $39.2 billion to $18.3 billion.

Data from Alphractal shows that the gap between Bitcoin’s market value and the mining companies that produce it is growing. The Bitcoin Market Value / Miners Market Value index is on an upward trend. This suggests that mining companies are undervalued compared to the Bitcoin they produce.

In addition, the Miners Miners Market Value / Hash Rate index is at very low levels compared to its peak in 2021. This shows that despite hardware investments in mining, companies are not able to provide sufficient returns.

According to the report, the current situation has three main consequences:

• Even as Bitcoin remains at a high price, mining profit margins are shrinking.
• The relative value of mining companies compared to Bitcoin is decreasing.
• Investors are concerned about the sustainability of the sector and are assigning less value to miners.

According to Alphractal, only financially strong and operationally flexible mining companies can survive in this difficult environment. This turmoil in the sector is creating a natural selection process:

• Companies with large cash reserves can withstand periods of low profitability.
• Companies with access to cheap energy gain a significant competitive advantage.
• Companies that have generated high returns in past cycles have a better chance of surviving this period.
• Merger and acquisition activities are expected to increase in the sector.

Alphractal points out that this period of low valuation could create opportunities for investors in the long term. In the past, periods of low valuation for mining companies were often followed by recovery phases. As the Bitcoin ecosystem grows, it is stated that the value of the companies providing this infrastructure could increase again.

At the end of the report, the following emphasis is noteworthy:

“The challenges in the mining sector continue, but past cycles have shown that those who survive this market can be the biggest winners after the storms.”

*This is not investment advice.