A Report on the State of the Global Bitcoin Mining Industry: Economic Pressures and Sustainable Development Goals

The global Bitcoin mining sector is navigating a period of significant transformation, characterized by record-high network computing power and escalating operational costs. This report analyzes the prevailing economic and environmental challenges, industry responses through technological innovation, and the strategic imperatives for aligning with the United Nations Sustainable Development Goals (SDGs).

Economic and Environmental Challenges in Digital Asset Production

The Crisis of Cost and Computing Power

The economic landscape for Bitcoin miners has become increasingly precarious following the 2025 halving event. This has created a challenging environment for achieving sustainable economic growth as outlined in SDG 8 (Decent Work and Economic Growth).

• Network Hashrate: Total network computing power has surpassed a historic high of 900 EH/s.
• Production Cost: The mining cost for a single Bitcoin surged by 34% to over $70,000 in Q2 2025.
• Revenue Decline: Post-halving, the unit computing power income (Hashprice) plummeted by 60% to approximately $0.049/TH, severely impacting profitability.

Energy Dependency and the Pursuit of SDG 7 (Affordable and Clean Energy)

The industry’s high energy consumption remains a central challenge, directly impacting its alignment with SDG 7 (Affordable and Clean Energy) and SDG 13 (Climate Action). The search for low-cost power is driving significant geographical shifts in mining infrastructure.

• High-Cost Regions: Mining operations in North America face shutdowns in areas where electricity prices exceed $0.1/kWh.
• Strategic Relocation: Capital is migrating to the Middle East, where government projects in the UAE offer electricity at $0.035/kWh and Oman provides subsidized rates of $0.05-$0.07/kWh.
• Renewable Infrastructure: Investment in data centers powered by renewable sources, such as the hydropower station expansion in Singapore, highlights a critical move towards sustainable energy solutions.

Industry Response: Innovation and Capital Restructuring

Capital Consolidation and Infrastructure Investment

The sector is undergoing a wave of capital integration and financing, aimed at building resilient and technologically advanced infrastructure in line with SDG 9 (Industry, Innovation, and Infrastructure).

• Strategic Acquisitions: The acquisition of CoreScientific by AI firm CoreWeave signals a convergence of high-performance computing assets.
• Major Financing Rounds: Listed mining companies including Mara, Riot, and CleanSpark have collectively raised over $3.7 billion.
• Venture Capital Investment: Southeast Asian firm CloudKGN secured $120 million from Sequoia Capital for data center expansion.

Technological Breakthroughs for Sustainable Production

Technological innovation is pivotal for improving efficiency and promoting responsible production patterns, directly addressing SDG 9 and SDG 12 (Responsible Consumption and Production).

• Energy Efficiency Improvements: KGNcloud’s third-generation liquid cooling systems have reportedly increased mining machine density by 300% while reducing energy consumption by 35%.
• Resource Optimization: The use of dynamic load balancing to intelligently schedule mining and AI tasks has achieved an energy reuse rate exceeding 80%.
• Economic Risk Mitigation: Hybrid mining protocols that dynamically switch between cryptocurrencies have been shown to reduce revenue volatility risk by 57%, enhancing economic stability for operators.

Analysis of Miner Viability and Strategic Approaches

A Comparative Overview of Individual Mining Strategies

The viability for individual participants to achieve economic security (SDG 8) varies significantly depending on the chosen strategy and capital investment.

1. Lottery Mining: Involves using low-power equipment (3-5 TH/s) for solo mining. While the probability of success is extremely low (0.0000006%), isolated successes have been recorded.
2. ASIC Solo Mining: Requires significant upfront capital, with high-performance machines like the Ant S21+ costing over $3,000. A cluster of over 20 units is needed to achieve competitive returns.
3. Pool Mining: The dominant strategy, where participants contribute computing power to a pool and receive proportional rewards. This model provides stable and predictable daily income.

Case Study: KGNcloud’s Approach to Accessible and Sustainable Mining

Platform Features and Alignment with SDGs

KGNcloud presents a cloud mining model designed to address key industry challenges by integrating financial compliance, technological efficiency, and accessibility, thereby aligning with multiple SDGs.

• Regulatory Compliance and Security: With UK Financial Conduct Authority (FCA) certification, the platform ensures operational transparency and asset security, fostering a stable investment environment (SDG 8).
• Accessible Economic Participation: By offering a $100 free computing power bonus upon registration, the platform lowers the barrier to entry, promoting inclusive access to cryptocurrency mining opportunities (SDG 8).
• Financial Stability Mechanism: The introduction of “principal and interest guaranteed” contracts is designed to shield users from market volatility, supporting stable and predictable profit generation.
• Intelligent and Efficient Operations: The use of AI algorithms to automate and optimize mining across global pools enhances efficiency, directly supporting the principles of SDG 9 and SDG 12.
• Flexible Asset Management: Daily settlement of income and support for withdrawals in multiple currencies (BTC, USDT, ETH, XRP) provide users with liquidity and control over their assets.

Sustainable Development Goals (SDGs) Addressed in the Article

SDG 7: Affordable and Clean Energy

The article extensively discusses the critical role of energy in Bitcoin mining, highlighting the challenges of high energy costs and the industry’s shift towards more affordable and efficient energy solutions. This directly connects to SDG 7, which aims to ensure access to affordable, reliable, sustainable, and modern energy for all.

• The “Energy noose” section details how high electricity prices (over $0.1/kWh) are forcing mining operations to shut down in North America.
• It contrasts this with the move to regions with lower electricity prices, such as the UAE ($0.035/kWh) and Oman ($0.05-0.07/kWh), emphasizing the goal of securing affordable energy.
• The mention of expanding a “Singapore hydropower station data center” points towards the use of clean and renewable energy sources.

SDG 9: Industry, Innovation, and Infrastructure

The article focuses on the technological revolution and infrastructure development within the mining industry to overcome cost and efficiency challenges. This aligns with SDG 9, which seeks to build resilient infrastructure, promote inclusive and sustainable industrialization, and foster innovation.

• The “Technical breakthrough path” section explicitly details innovations like “Liquid-cooled mining machine cluster,” “Dynamic load balancing,” and “Hybrid mining protocol.”
• It describes the development of infrastructure, such as the expansion of a “hydropower station data center” in Singapore.
• The article frames these advancements as a “technological revolution” aimed at reconstructing the mining landscape, highlighting the theme of innovation.

SDG 8: Decent Work and Economic Growth

The article touches upon the economic aspects of the mining industry, including profitability, capital investment, and productivity, which are central to SDG 8. It explores how technological upgrades and innovation are driving economic productivity and value creation.

• It discusses large-scale capital investments, such as CoreWeave’s acquisition of CoreScientific and over $3.7 billion raised by major mining companies, indicating significant economic activity.
• The goal of these investments and technological upgrades is to increase profitability and income, as seen in the case where 10 S21+ miners can generate a daily income of about $112.
• The development of AI-driven systems and more efficient hardware represents a move towards higher levels of economic productivity through technological upgrading.

SDG 12: Responsible Consumption and Production

The drive for energy efficiency in the article relates to SDG 12, particularly the goal of ensuring sustainable consumption and production patterns. By reducing the energy required for mining, the industry is moving towards more efficient use of natural resources (energy).

• The article highlights that the KGNcloud liquid cooling system leads to “energy consumption reduced by 35%.”
• The concept of “Energy reuse rate exceeds 80%” through dynamic load balancing is a clear example of promoting resource efficiency, a key component of responsible production.

Specific Targets Identified

Targets under SDG 7: Affordable and Clean Energy

1. Target 7.2: By 2030, increase substantially the share of renewable energy in the global energy mix.
   • Explanation: The article mentions that the company CloudKGN received funding to “expand the Singapore hydropower station data center.” Hydropower is a renewable energy source, and investing in its expansion for mining directly contributes to increasing the share of renewable energy used in the industry.
2. Target 7.3: By 2030, double the global rate of improvement in energy efficiency.
   • Explanation: The article provides specific examples of improving energy efficiency. The “KGNcloud third-generation liquid cooling system” is cited as reducing “energy consumption by 35%.” This is a direct effort to improve the energy efficiency of mining operations.

Targets under SDG 9: Industry, Innovation, and Infrastructure

1. Target 9.4: By 2030, upgrade infrastructure and retrofit industries to make them sustainable, with increased resource-use efficiency and greater adoption of clean and environmentally sound technologies and industrial processes.
   • Explanation: The article describes a technological revolution in mining, focusing on upgrading the industry. The adoption of “Liquid-cooled mining machine cluster” technology is presented as a way to increase mining density while reducing energy consumption, making the industrial process more sustainable and resource-efficient.
2. Target 9.b: Support domestic technology development, research and innovation in developing countries, including by ensuring a conducive policy environment for, inter alia, industrial diversification and value addition to commodities.
   • Explanation: The article details a “Technical breakthrough path” with specific innovations like the “KGNcloud third-generation liquid cooling system” and an “AI intelligent mining system.” This focus on research and the development of new, proprietary technologies to solve industry problems is a clear example of supporting technology development and innovation.

Targets under SDG 12: Responsible Consumption and Production

1. Target 12.2: By 2030, achieve the sustainable management and efficient use of natural resources.
   • Explanation: Energy is the primary natural resource discussed. The article’s emphasis on reducing energy consumption (“energy consumption reduced by 35%”) and reusing energy (“Energy reuse rate exceeds 80%”) directly addresses the goal of achieving more efficient use of this resource.

Indicators for Measuring Progress

The article implies or directly states several metrics that can serve as indicators to measure progress towards the identified targets.

Indicators for SDG 7 Targets

• Indicator for Target 7.2: Investment in renewable energy infrastructure. The article provides a qualitative indicator by mentioning the plan to “expand the Singapore hydropower station data center.”
• Indicator for Target 7.3: Percentage reduction in energy consumption. The article provides a specific quantitative indicator: “energy consumption reduced by 35%.” Another is the “Energy reuse rate,” which is stated to “exceed 80%.”

Indicators for SDG 9 Targets

• Indicator for Target 9.4: Adoption rate of clean and efficient technologies. The article points to the use of “Liquid-cooled mining machine cluster” and “AI intelligent mining system” as indicators of this adoption. The resulting “35% reduction in energy consumption” is a measurable outcome.
• Indicator for Target 9.b: Development of new technologies. The creation of the “KGNcloud third-generation liquid cooling system” serves as a concrete indicator of successful technological development and innovation within the industry.

Indicators for SDG 12 Targets

• Indicator for Target 12.2: Energy intensity/efficiency. The metric “energy consumption reduced by 35%” is a direct indicator of improved efficiency in the use of energy resources for production (mining).

Summary of Findings

Source: openpr.com