What It Takes to Keep Bitcoin Mining Competitive

KASmedia’s Jennifer speaks with Konstantin Zherebtsov, General Manager of EMCD Mining Pool, about the economics of Bitcoin mining, EMCD’s renewed focus on miners, relocation and monitoring services, and the growing overlap between mining and artificial intelligence.

This transcript has been edited for clarity and length.

Jennifer, KASmedia: Hi, everyone. I’m Jennifer with KASmedia. Today I’m joined by Konstantin Zherebtsov, General Manager of EMCD Mining Pool, a global top-10 Bitcoin mining pool and digital asset infrastructure provider. Konstantin oversees the pool’s operations and public-facing partnerships, with a particular focus on improving miner efficiency and performance.

Today, we’ll discuss the current mining environment, EMCD’s new services, including monitoring and mining relocation, and the growing intersection between Bitcoin mining and AI. Konstantin, thank you for joining us. For listeners who may not be familiar with EMCD, could you tell us more about the company and your role?

Konstantin Zherebtsov, EMCD: Thanks for having me. It’s great to be on the KASmedia podcast.

It’s a very interesting time for us. Market conditions and seasonal changes affect mining significantly, and a lot is happening inside EMCD. Most importantly, EMCD is getting back to its roots. Over nearly a decade, the company grew into a large ecosystem. Now we are talking about EMCD as a mining pool again, with a renewed focus on miners. I’ve been proud to lead the mining-pool side of the business for almost a year.

Jennifer: EMCD has been around since 2017, which is impressive in the crypto industry. How has the company remained relevant for so long?

Konstantin: It has been almost ten years. Since 2017, EMCD has grown into one of the world’s top Bitcoin mining pools. Bitcoin remains our core asset.

Along the way, as the company reached hundreds of thousands of users and miners produced a substantial amount of BTC through the pool, we saw that miners needed more than the pool itself. EMCD added a wallet, yield products and other fintech services. These products developed in response to customer demand, and the company learned to answer a wide range of needs.

At some point, however, the ecosystem became too complex to serve each segment precisely, especially miners, who remain our core audience. We therefore began separating parts of the ecosystem into distinct products and brands. EMCD Pool remains focused on mining and mining-related products, while Coinhold operates as its own product. This structure helps us respond more directly to customer requests. Even after nearly a decade, we stay close to customers of every size and listen to their feedback.

Jennifer: You’ve described EMCD as a global top-10 Bitcoin mining pool, and the company reports that more than 30,000 BTC have been mined through the pool. What has driven that growth, and where does most of your mining activity come from?

Konstantin: Looking at that history from inside the company, even though I’ve only been here for the past year, I can see how much responsibility it required from everyone involved. Last year alone, miners produced more than 4,500 BTC through the pool. We also work with more than 40,000 miners.

The pool is genuinely global rather than belonging to one particular region. We have built a compliance-oriented approach and pursue licensing where appropriate. Kazakhstan is one recent example.

If you look back to 2017, the crypto and Bitcoin markets went through many cycles, including halvings and downturns. EMCD kept operating, retained and supported users, provided stable payouts and remained predictable on the support side. Mining is closely connected to fintech in this respect: trust and reliability matter most. Reliability helped us grow, retain customers and continue expanding.

Jennifer: Mining remains a cornerstone of the industry even as trends such as NFTs, yield farming and gaming come and go. You also mentioned that mining has cycles and seasonal effects. Could you explain those?

Konstantin: Mining is a business that converts electricity into value, and electricity is produced and priced differently across regions. Outside temperature is one of the most important seasonal factors. Summer is generally not the best season for mining because cooling becomes more expensive.

Northern regions spend less on cooling, while liquid-cooling systems become more common closer to the equator. These factors can create visible changes in the global hashrate: it may slow during the summer and recover when temperatures fall.

These are the kinds of details you begin to feel directly when you work inside the market. There are many variables that miners need to monitor.

Jennifer: Beyond climate and outside temperature, what other energy trends are shaping the industry?

Konstantin: Energy conditions are largely shaped by local governments. A region becomes attractive for mining when it combines affordable power with appropriate legislation. Historically, mining capacity has migrated from one such location to another when those conditions changed.

Even if the legal and tax environment is favorable, a serious mining facility will not remain if electricity prices are uncompetitive. Mining has become a conventional business in that sense. There are ranges of Bitcoin prices and electricity costs that determine whether an operation is profitable.

When the Bitcoin price rises above the level at which the economics begin to work, electricity efficiency becomes even more important. A miner can benefit from a strong Bitcoin price and hashprice, but inefficient equipment or expensive electricity can still make the operation unprofitable. Miners therefore need to find the right combination of climate, electricity prices, legislation, taxation and compliance.

Jennifer: A few years ago, the mining community placed a strong emphasis on renewable energy. Is that still an important consideration?

Konstantin: If a renewable source is economically efficient, it works. The question often comes down to subsidies or tax preferences. ESG appears to be less prominent than it was, but renewable energy can still provide cheaper electricity in certain regions. It matters when the infrastructure and legislation support it.

Jennifer: Do high oil prices affect mining through electricity costs?

Konstantin: The oil price is not always a direct driver. It is more often an indicator of wider political and economic conditions. Those conditions matter, but a mining pool cannot influence them.

Our customers may be above or below the profitability threshold depending on the Bitcoin price, electricity price and other operating conditions. When they fall below it, we step in with whatever support is appropriate for that particular case.

Jennifer: That brings us to EMCD’s mining-relocation service. How does it work, and how can it help miners improve their returns?

Konstantin: Mining is a business, so operators need to understand their profit-and-loss model. They must account for electricity costs, the Bitcoin price, equipment and location.

When customers are unhappy with their current conditions, we can support them through the relocation process. Pool fees matter, but they are now much less significant than many operating factors that come first.

As a global pool, we work with partners in different regions, including data centers with established terms for electricity, support and repairs. We can help a miner identify a suitable location and guide them from their current setup to one that better fits their business model.

The right process depends on the miner’s circumstances. They may already own ASICs and need to move a fleet, or they may need to sell equipment in one market and establish a new operation elsewhere. This is part of our broader effort to focus specifically on miners’ needs. Once a customer tells us what they need, we can often provide proposals within a day.

Jennifer: What else should miners consider when choosing a pool? Can EMCD also help them set up their operations around their specific needs?

Konstantin: Geography is only one part of the equation. Once a miner is operating in a suitable location, day-to-day reality begins: temperatures change, ASICs fail and other problems occur. Operators need to know whether everything is running properly and intervene quickly when it is not.

That need led us to develop EMCD Monitoring. The platform is already being used by some of our customers and data-center partners. Downtime causes real losses, and those losses can become substantial depending on the miner’s hashrate and the quality of the ASICs.

Miners also need to maximize the output they receive from each unit of energy. Firmware can improve ASIC efficiency. We have worked with Vnish in this area for several months. Combining the pool, monitoring and firmware allows us to offer better overall terms than a customer might receive by purchasing each service separately. It also reduces the time required to set everything up.

Jennifer: With so much operational data available, can EMCD help miners identify the most important metrics and optimize their operations?

Konstantin: Yes. We advise clients directly and also share findings through the media. We track the points at which mining becomes profitable or unprofitable in different regions under different Bitcoin and electricity prices. By monitoring these conditions and understanding the cost of each part of the operation, we can explain how the economics work and share that knowledge with miners.

Jennifer: Were those operational needs what shaped the new monitoring platform? What else did you consider while developing it?

Konstantin: We have a strong product team, and I previously worked in digital-product development. The most reliable source of truth for a business and its products is its customers.

We do not want to spend months polishing something without real-world feedback. We stay in contact with the people who use the product. Changes often begin when a customer tells us that something is not working, is inconvenient or is missing.

Our marketing and research teams also help us understand market developments and emerging trends. But customer feedback remains the most reliable source of information for product development.

Jennifer: Who are most of your customers? How does the balance between institutional and retail miners look?

Konstantin: EMCD has become an institutional-grade pool. Our service-level agreements and infrastructure are strong enough for us to act as a serious partner to large operations. At the same time, many customers are retail miners with only a few ASICs, or even one. There is no minimum threshold for joining the pool.

Large miners sometimes connect a small portion of their hashrate first to see how the pool works. Our approach means they receive the same level of support, a reliable interface and access to the same products as larger customers.

We also remain close to customers of every size. If a large or small partner needs a specific adjustment, EMCD is still agile enough to consider a custom approach. We do not define ourselves as an enterprise-only pool.

Jennifer: EMCD has received industry awards for its mining pool, mining services and P2P service. How have the platform and its services contributed to that recognition?

Konstantin: Recognition for mining services supports the point I’ve been making. We do not treat the pool as an isolated product. We combine it with products such as monitoring and firmware, as well as services such as relocation and financing. The recognition reflects that broader approach and the appreciation of both customers and the industry.

Jennifer: Bitcoin is central to the pool. Which other coins does EMCD support?

Konstantin: We support leading proof-of-work assets, including Bitcoin Cash, Ethereum Classic, Litecoin and Dogecoin, along with merged-mined coins and selected altcoins. We keep a close watch on demand. Some coins lose activity over time, so we focus on the assets customers request most.

We also respond proactively when customers ask for a new asset. Zcash is one example. Customers asked for it, and we plan to support it soon. Network upgrades, supply changes and renewed interest in privacy have made the network more mature and increased market demand. The mining pool operates on the transparent side of the network, but it can still support miners who want to participate in that ecosystem.

Jennifer: Let’s discuss Bitcoin mining difficulty. How does it affect profitability and the mining business?

Konstantin: The relationship is fairly direct. Bitcoin is very effective at self-balancing. When the price falls, rigs operating below the profitability threshold shut down. That reduces competition for the miners who remain, difficulty falls and the network later recovers. The system is always moving and adjusting.

At the time of this conversation, Bitcoin was trading around the $80,000 range, above a general profitability threshold for many operators, although the threshold differs by location because electricity and other costs vary. If roughly one-sixth of the network’s hashrate goes offline, the miners who remain become more profitable.

Large facilities and pools are generally best placed to withstand these movements because they concentrate more computing power. If an operator can survive a downturn and hold mined BTC until it chooses to convert it into fiat or another asset, it can play a longer-term game. To ride these cycles, a miner often needs to be large or participate in a pool.

Jennifer: You described Bitcoin as self-balancing. Do you think that will remain true after future halvings?

Konstantin: Bitcoin is well designed. There are many mathematical models for what may happen after the next halving, but my instinct is that the network will continue to balance itself. The amount of computing power required to remain competitive may simply rise again.

Jennifer: Mining produces data that most people do not see. What longer-term insights have you drawn about Bitcoin, its price cycles and supply and demand?

Konstantin: Without offering investment advice, I would tell people to treat mining as a serious business. An operator who does not understand the underlying economics is unlikely to succeed. We provide calculators so miners can see whether they are profitable and, if they are not, what changes might address the problem.

Another trend is the concentration of Bitcoin’s hashrate. A small number of leading pools account for a large share of the network’s computing power, which could become a concern. I think the market can address this organically, but retail miners may face greater difficulty over the next few years.

Jennifer: How should miners balance maximizing hashrate, controlling energy costs and maintaining reliable operations?

Konstantin: Mining should be managed like any other business. Operators need to track their costs, revenue and full P&L model. They should use tools that collect and report metrics automatically.

AI and agentic tools can help signal when something is wrong, but the operator still needs to build and manage the entire workflow. Mining is not a matter of plugging in a machine and walking away. A retailer tracks cashiers and a media company tracks visitors; a mining business must track its own operating metrics with the same discipline.

Jennifer: How would you characterize the mining environment today, particularly for retail miners?

Konstantin: Mining has become a specialized industry with an identity of its own. It is also under pressure from AI facilities, and a noticeable part of the mining industry has moved toward AI infrastructure. I expect some correction after the spike we have seen. That movement also affects total hashrate and hashprice, contributing to the market’s self-balancing behavior.

Retail miners may remain competitive through specialized use cases, such as putting the heat generated by mining to productive use or integrating mining with renewable-energy systems. Multi-purpose devices and systems could create a sustainable niche for that part of the market.

Jennifer: Some Bitcoin mining facilities are allocating power to AI. Do you see that as a productive overlap, or do you expect capacity to return to Bitcoin mining?

Konstantin: I think the shift is somewhat overheated. Not everyone who moved into AI has been satisfied. We heard this directly from customers, and their feedback made us study the market more closely.

From what we observed, only one or two out of roughly ten companies that moved into the consumer side of AI infrastructure survived even during the peak of the cycle. On the hardware side, the companies most likely to remain are those with long-term contracts with major customers.

We respect a company’s decision to move into AI, but the trend has not changed EMCD’s direction. We remain committed to mining and believe Bitcoin mining is a large enough market to support that focus. There may also be future synergy with AI, because autonomous agents will need assets with which to transact, and Bitcoin could be one of those assets.

Jennifer: AI agents are often discussed in relation to trading, but Bitcoin is rarely central to that conversation.

Konstantin: There is a gap between the Bitcoin community, which can be tribal and conservative, and the wider digital-asset sector. Yet Bitcoin’s fundamental role as a store of value remains intact. Over its lifetime, it has become less volatile and more predictable relative to many other crypto assets.

Other networks may offer more sophisticated functionality, including smart contracts, but they do not necessarily provide the same level of trust and fundamental value as Bitcoin.

Mining itself now feels conservative, even though it was once considered extremely risky and poorly understood. That does not mean mining companies should avoid AI. EMCD already uses AI technologies and is considering tools for customers who are becoming more familiar with agentic workflows.

The way to remain in the market is to keep doing the core work well over many years, build trust and avoid jumping from one trend to another. That consistency is how a company earns a reputation for reliability.

Jennifer: We haven’t discussed EMCD’s miner-referral program. How does it work?

Konstantin: The model is straightforward. A participant refers miners to the pool and earns a share of the pool fees generated by their hashrate. Referrers can track the results in a dashboard and integrate the data into their own systems, allowing the program to become part of their business.

It is an important part of EMCD Pool because many partners trust the company enough to introduce the pool to their own customers and partners. Media companies and other specialized businesses can participate as well.

Jennifer: Are there any other EMCD services or products you would like to mention?

Konstantin: Beyond the mining pool, which supports Bitcoin and other leading proof-of-work coins, we offer ASIC monitoring, firmware, financing and relocation services. We support miners from the first conversation through the operation of their equipment, sharing what we have learned along the way.

There are also significant developments underway that I’m not ready to announce yet. People can follow EMCD on social media for updates or join the pool and potentially become early alpha or beta users of new products.

Jennifer: Where can listeners find EMCD online?

Konstantin: EMCD is active on X, YouTube, LinkedIn and Telegram. The easiest route is to visit emcd.io and choose your preferred channel from the links at the bottom of the site.

Jennifer: Thank you, Konstantin. Is there anything else you would like to share before we close?

Konstantin: Thank you again for having me. EMCD welcomes miners of every size and from every part of the world. Anyone can join a top-10 Bitcoin pool, with pool fees starting at 1.5% and a range of supporting services.

Even if a miner is already experiencing problems, they can contact us. We can discuss how to help make the operation profitable again.

Jennifer: Thank you again for joining us. I look forward to following EMCD and seeing what the team does next.

Konstantin: Thank you for inviting me.