Emre Yumlu 
As we step into 2025, the Bitcoin mining sector is facing mounting challenges. Cryptocurrency analyst Joao Wedson emphasized that miners are under growing pressure despite the resilience of Bitcoin’s price.
Strong Prices, Weak Profits
Although Bitcoin continues to trade at relatively high levels, miners’ earnings remain far below the record highs seen during the 2017 and 2021 bull runs.
A major factor behind this is the surging hash rate, which has forced mining companies to invest heavily in more advanced and expensive hardware. At the same time, on-chain transaction volumes have stayed muted since 2022, limiting revenue growth and intensifying the financial strain across the industry.
Measuring Mining Profitability: The MEI Indicator
To better track the health of the mining economy, Wedson introduced a new tool called the Mining Equilibrium Index (MEI).
The MEI is calculated by dividing the 30-day average revenue-to-hash ratio by the 365-day average.
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Above 1.0 Indicates favorable conditions
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Below 0.5 Linked to stress, capitulation, or hash rate corrections
Based on the latest figures, the MEI currently stands at 1.06. While this is comfortably above the danger zone of 0.5, it is still a long way from the 2.5 peaks reached in 2017 and 2021.
The Key Question for 2025: Security vs. Costs
According to Wedson, the most pressing issue for 2025 is whether mining companies can maintain the security of the Bitcoin network amid rising competition and escalating operational expenses.
Costs related to labor, electricity, and infrastructure continue to climb, squeezing profitability further. If mining revenues fail to keep up, Wedson warned that miners may be forced to liquidate part of their Bitcoin reserves to stay afloat.
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