JPMorgan Identifies $85,000 as Key Bitcoin Production Cost Threshold

JPMorgan analysts, led by Nikolaos Panigirtzoglou, estimate the average production cost for 1 Bitcoin (BTC) at approximately $85,000, viewing it as a soft floor for the mining industry. The report notes that when Bitcoin trades below this level, miners with higher operational costs may face profitability issues, potentially leading to forced selling or equipment shutdowns. As of September 30, Bitcoin was trading at $83,900. The bank highlights that miners have been adapting to lower profitability by relocating to regions with cheaper electricity, selling older equipment, and pivoting toward artificial intelligence infrastructure.