In Q1 2025, bitcoin inflows to exchanges from large-scale miners remained relatively stable, while smaller mining companies increased their sell-offs. This was highlighted in a Coin Metrics report.

New @Coinmetrics State of the Network: Q1 2025 Bitcoin Data Special
By @TanayVed

One year post-halving, Bitcoin miners are adapting- but pressure is mounting.

Key insights from this issue:

– Miner revenues have stabilized (~$3.6B in Q1), but fees still make up just 1.33%

-… pic.twitter.com/Xjlr4SgBsX
— CoinMetrics.io (@coinmetrics) March 25, 2025

According to analysts, the industry experienced a stabilization period after the April 2024 halving, “adapting to reduced block rewards, tighter margins, and shifting operational dynamics.”

Larger miners were in a stronger position, as they could upgrade to more efficient hardware and deploy operations in regions with cheaper electricity. Some major companies, such as Core Scientific, diversified into high-margin AI computing, Coin Metrics experts noted.

Over the quarter, total mining revenue reached a “healthy” ~$3.6 billion. However, transaction fees accounted for only 1.33% of this figure.

“As block rewards decrease, sustaining long-term incentives for miners may require larger transactions and increased competition for block space to generate substantial fee revenue,” analysts emphasized.

They also identified several key trends:

Chinese manufacturer Bitmain’s devices contribute up to 76% of the global hash rate, raising supply chain risks amid geopolitical tensions.
Low-value transaction activity is surging—transactions under $100 now account for about 60% of all bitcoin transfers.
Layer 2 solutions such as Lightning Network, Stacks, and Botanix are “gaining momentum,” enhancing scalability, unlocking new use cases, and laying the foundation for a stronger fee market.

Previously, Bernstein analysts downgraded their outlook on bitcoin mining stocks for 2025. However, the firm pointed to a new phase of the cryptocurrency bull market, with U.S. President Donald Trump’s administration initiatives acting as a key catalyst.