11-28-2025 
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In 2021, BTC mining had this beautiful simplicity to it—find cheap electricity. That was it. You’d hunt down an abandoned factory in Texas, negotiate with the power company, fill the space with Antminers, and, assuming your cooling setup didn’t completely fail, you’d make money. Lots of it, if you did things right.
That playbook is dead now.
What’s killing miners isn’t hash rate competition or another crypto winter—it’s something way more mundane. There isn’t enough electricity to go around anymore, and what’s available costs too much. Even the places that used to have surplus capacity are running dry. We’re in the midst of the worst operational squeeze the industry has faced since 2022, except this time there’s no waiting it out. The infrastructure literally cannot support the demand.
The U.S. Energy Information Administration projects wholesale electricity prices jumping 8.5$ in 2026, landing somewhere around $51 per megawatt-hour. Then another 6-10% increase in 2027. The reason isn’t complicated: data centers are eating the grid alive. Every new hyperscale artificial intelligence (AI) facility, from Northern Virginia to Arizona, competes for the same limited capacity, and miners lose those bidding wars almost every time.
Texas is supposed to be the promised land for mining. More hash rate is concentrated there than anywhere outside China. However, ERCOT has been forcing curtailments on large loads whenever the grid becomes stressed, which is happening more frequently. Those miners who spent years flexing about their 2-cent per kWh off-peak contracts? They’re getting slammed with real-time prices above 20 cents that last for hours. One bad afternoon in the summer can erase an entire week’s worth of margins. Some operators I’ve spoken to no longer wait for the curtailment notices—they simply shut down preemptively because the alternative is going bankrupt.
And honestly, Texas has it easier than most places right now.
Malaysia dropped a bombshell announcement this month: illegal mining operations there have stolen over $1.1 billion in electricity since 2020. That’s not a typo. Enough power to run a mid-sized city, just gone. Authorities have demolished over 13,000 illegal farms over the past five years. These operations were hidden everywhere—abandoned shophouses, sketchy industrial buildings, places where miners literally tapped into power lines. Now, the government is deploying smart meters that detect the specific electrical signature that immersion cooling rigs emit. Vietnam, Indonesia, Iran—they’re all cracking down hard. Countries that previously looked the other way because it seemed harmless can’t ignore the drain anymore.
Even the cold-weather refuges are tapped out. Quebec and Labrador stopped accepting new mining applications entirely. Iceland, which built its economy on cheap geothermal and hydro, has raised industrial rates twice in 18 months. Swedish municipalities that actively recruited miners in 2018 are debating outright bans now because residential heating subsidies are at risk. The nomadic model, where you’d chase stranded energy anywhere on the planet, is finished.But some operators are getting genuinely creative. In Finland and parts of northern Sweden, smaller mining outfits partner with district heating systems and sell their waste heat to greenhouses and apartment buildings. A rig costing 8 cents per kWh to operate drops to around 3 cents after heat credits. Upstate New York has these converted paper mills now—mining-heating hybrids that keep whole towns warm through winter. The model only pencils out when temperatures drop below freezing, but in those climates, it’s brutally efficient.
The major publicly-traded miners are loading up on debt to secure fixed-price power contracts while they still exist. CleanSpark (NASDAQ: CLSK) recently upsized a bond offering to $1.15 billion. Almost all that capital is going toward owned substations and behind-the-meter gas generation. Riot’s (NASDAQ: RIOT) and Marathon (NASDAQ: MARA) are doing the same thing. There’s an unspoken rule forming across the industry: if you don’t control your electrons from generation to consumption, someone will eventually take them from you. It’s just a question of when.
Smaller miners and home operators are getting crushed. Cloud-mining platforms have gone into overdrive with their marketing, promising passive income without the headaches of hardware or utility bills. Most are probably legitimate. Some definitely aren’t. But the surge in signups tells you how many people have thrown in the towel on running their own equipment.
Meanwhile, BTC just keeps going, totally oblivious. The network’s hitting record difficulty levels, completely indifferent to the chaos underneath. It doesn’t care if the next block comes from some jury-rigged setup in a Malaysian jungle or a state-of-the-art facility in West Texas. Someone somewhere just needs to foot the bill.
Except fewer people are willing to do that every month. The days when mining felt like arbitrage—basically free money because you found a grid inefficiency to exploit—are gone for good. The survivors will be the operators who figured out how to own their generation, sell their waste heat, or both. Preferably both.
Everyone else is burning electricity they can’t afford and running out the clock on when they’ll have to shut down.
Watch: Culture of BSV and the ‘Crypto’ Economy
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