Electricity costs account for a large proportion of the total costs of mining operations, usually 60% - 80%. When energy prices rise, the profitability of mining operations will be severely affected, especially during periods of low cryptocurrency prices. Miners in high - electricity - cost regions will find it even more difficult to make a profit. For instance, if a miner spends $0.12 per kilowatt - hour on electricity and generates $30,000 worth of Bitcoin in a month, rising energy prices to $0.20 per kwh could significantly reduce their profit margins.