Bitcoin Mining Glossary

30+ clear definitions for Bitcoin mining terms. Hashrate, hashprice, ASIC, halving, FPPS, immersion, PPA — everything you need to understand a mining operation.

A

ASIC(Also called : Application-Specific Integrated Circuit): An ASIC (Application-Specific Integrated Circuit) is a chip designed for a single task: computing SHA-256 hashes. Bitcoin ASICs are 100,000× more efficient than GPUs for this task. Major manufacturers: Bitmain (Antminer), MicroBT (Whatsminer), Canaan (Avalon).

B

Block reward(Also called : Block subsidy): The block reward is the BTC amount received by the miner who solves a block. It consists of the block subsidy (halved every 4 years) and the transaction fees. In 2026, subsidy = 3.125 BTC, fees ≈ 0.05-0.5 BTC depending on congestion.
Break-even(Also called : Break-even point): Mining break-even is the BTC price below which the operation goes unprofitable (revenue < electricity cost). Calc: BTC break-even = daily OPEX / BTC mined/day. A 30 J/TH ASIC has ~3× higher break-even than a 10 J/TH ASIC.

C

CAPEX(Also called : Capital expenditure): CAPEX (capital expenditure) = initial acquisition cost of an ASIC + infrastructure (rack, PSU, switch, ventilation). An Antminer S21 costs ~$3500-4500 depending on market. CAPEX is measured in $/TH: 12-25 $/TH typical in 2026.
Coinbase transaction: The coinbase transaction is the first transaction in each Bitcoin block. It creates new BTC (block subsidy) and collects the block transaction fees. Has no inputs (created ex nihilo), is locked for 100 blocks before being spendable.
Curtailment(Also called : Demand response): Curtailment (or demand response) is the voluntary shutdown of ASICs during electricity demand peaks, in exchange for grid payments (ERCOT in Texas, RTE in France). Converts mining flexibility into a secondary revenue stream.

D

Difficulty: Bitcoin difficulty is a parameter that adjusts the block validation target. It adjusts every 2016 blocks (~14 days) to maintain an average 10-minute block time. As network hashrate grows, difficulty grows proportionally. Measured in T (tera) — example: 110 T in 2026.
Difficulty adjustment: Difficulty adjustment happens every 2016 blocks (~14 days). If blocks were mined faster than 10 min average, difficulty increases. Otherwise, it decreases. Max change per adjustment: ±300%. Over 2024-2026, average monthly growth ~5-8%.

E

Efficiency (J/TH)(Also called : Energy efficiency): Efficiency J/TH (joules per tera-hash) measures the electricity consumed to produce 1 TH/s. Lower is better. In 2026, top-tier ASICs reach 9-12 J/TH (Antminer S23 Hydro at 9.5 J/TH). An ASIC at 30 J/TH is 3× less profitable at the same electricity cost.
EH/s(Also called : Exa-hash per second): EH/s = exa-hash per second = 10¹⁸ hashes/sec. Unit of global Bitcoin hashrate. 1 EH/s = 1000 PH/s = 1,000,000 TH/s. In 2026, the network approaches 700-800 EH/s.

F

FPPS(Also called : Full Pay Per Share): FPPS (Full Pay Per Share) is the most common payout mode of modern pools. The miner gets the block subsidy + a share of transaction fees, calculated on the network average. Zero variance for the miner (pool absorbs risk). Typical fees: 2.5-4%.

H

Halving(Also called : Block reward halving): Halving is the 50% reduction of the block reward, occurring every 210,000 blocks (~4 years). Halvings: 50→25 BTC (2012), 25→12.5 (2016), 12.5→6.25 (2020), 6.25→3.125 (April 2024). Next halving expected ~2028 (3.125→1.5625 BTC). Direct impact on mining profitability.
Hashprice: Hashprice is the daily USD revenue per PH/s (peta-hash per second) of computing power. It is the key mining profitability indicator. Formula: Hashprice = (Block Reward + TX Fees) × 144 × BTC Price ÷ Network Hashrate. Example: at $50/PH/day, a 0.27 PH/s ASIC earns $13.5/day gross.
Hashrate(Also called : Hash rate): Hashrate is the computing power of an ASIC, measured in TH/s (tera-hashes per second). An Antminer S21 XP delivers 270 TH/s, meaning 270×10¹² hashes per second. It represents how many block-solving attempts the miner makes each second.
Hosting (colocation)(Also called : Mining colocation): Hosting (or colocation) is housing ASICs in a specialized datacenter. The operator provides electricity, cooling, connectivity, and maintenance. Typical pricing: $0.06-0.09/kWh all-in in Europe, $0.04-0.07 in US/Canada. Dominant model for retail and institutional miners.
Hydro cooling(Also called : Liquid cooling): Hydro cooling circulates water through plates in direct contact with ASIC chips. More efficient than air (up to 95% heat flux), enables overclocking and higher density. Models: Antminer S21 Hydro, S23 Hydro, Whatsminer M63 Hydro.

I

Immersion cooling: Immersion cooling submerges ASICs in a dielectric fluid (mineral or synthetic oil). Advantages: -30% noise, +30% lifespan, overclocking enabled, 5-10× higher density. Drawbacks: high CAPEX, maintenance complexity.

K

kWh(Also called : Kilowatt-hour): A kilowatt-hour (kWh) is the standard unit of electricity consumption. 1 kWh = 1000 W consumed for 1 hour. An Antminer S21 XP (3.6 kW) consumes 86.4 kWh/day. At $0.06/kWh, electricity cost = $5.18/day.

M

Mempool(Also called : Memory pool): The mempool is the queue of unconfirmed Bitcoin transactions. Miners pick which to include in their block, prioritizing high-fee transactions. A congested mempool (>100 MB) signals high fees and boosted miner revenue.
Mining farm: A mining farm is an industrial site housing dozens to thousands of ASICs. Key components: HT/LT transformation, ventilation/cooling, racks, fiber, 24/7 monitoring. Typical capacity: 1-100 MW. Optimal location: electricity <$0.05/kWh + cold climate.
Mining pool: A mining pool aggregates the computing power of thousands of miners to share rewards. Each miner gets a share proportional to the hashrate they contributed, minus a fee (~1-3%). Top pools: Foundry USA, AntPool, ViaBTC, F2Pool, Binance Pool.
Mining ROI(Also called : Return on Investment): Mining ROI is the time needed to recover CAPEX through profit. Formula: ROI (days) = CAPEX / daily profit. An S21 XP at $4000 with $10/day profit has a 400-day ROI (~13 months). Highly sensitive to BTC price, difficulty, and electricity cost.

N

Network hashrate: Network hashrate is the combined computing power of all Bitcoin miners, expressed in EH/s (exa-hashes/second). In 2026, ~700 EH/s. The higher the network, the higher the difficulty, the lower the hashprice. Key indicator of Bitcoin security and mining competition.

O

OPEX(Also called : Operating expenditure): OPEX (operating expenditure) = recurring costs: electricity, pool fees (~2%), hosting fee, maintenance. Electricity is 70-90% of OPEX. At $0.06/kWh, OPEX of an S21 XP = ~$5.5/day.

P

PH/s(Also called : Peta-hash per second): PH/s = peta-hash per second = 10¹⁵ hashes/sec. 1 PH/s = 1000 TH/s. Unit used for hashprice (USD/PH/day) and mid-size mining farms (1-10 PH/s = 4-40 modern ASICs).
PPA(Also called : Power Purchase Agreement): A PPA (Power Purchase Agreement) is a long-term electricity purchase contract directly with a producer (solar, wind, hydro). Locks in a predictable price over 5-15 years, often below spot market. Common strategy for large institutional miners.
PPLNS(Also called : Pay Per Last N Shares): PPLNS pays the miner based on shares contributed in the last window of found blocks. More volatile than FPPS but no risk fee (miner bears variance). Rewards loyal miners.
PPS(Also called : Pay Per Share): PPS (Pay Per Share) pays the miner only the block subsidy, excluding transaction fees. Less common today since it's less favorable than FPPS when fees are high.

S

SHA-256: SHA-256 is the cryptographic hash algorithm used by Bitcoin. Designed by the NSA in 2001, it produces a 256-bit hash (64 hex characters). Mining Bitcoin requires finding a hash below the current difficulty target, which takes billions of attempts per block.
Stratum: Stratum is the communication protocol between ASICs and mining pools. Stratum V1 (legacy) and V2 (rolling out, more secure and allowing miners to choose transactions). Standard port: 3333 or 4444.

T

TH/s(Also called : Tera-hash per second): TH/s = tera-hash per second = 10¹² hashes/sec. Unit of individual ASIC hashrate. An Antminer S21 XP = 270 TH/s. The reference unit for comparing machines.
Transaction fees: Transaction fees are paid by Bitcoin users to incentivize miners to include their transaction in a block. In 2026, they represent 5-30% of mining revenue depending on congestion. During events (Ordinals, Runes), can temporarily exceed the subsidy.