Is Crypto Mining Still Profitable in 2024? A UK Perspective

Crypto mining used to be a gold rush—now it's more like running a business with tight margins.

A physical crypto coin on a keyboard

30-Second Summary

Crypto mining used to be an easy way to earn digital coins, but in 2024, it's become a lot harder. Electricity bills in the UK are high, mining hardware isn’t cheap, and the profits aren’t what they once were. 

Still, you can make it work with the right tools, smart tax advice from a UK cryptocurrency accountant or UK crypto tax advisor, and lower energy costs. This article breaks it all down—from profit numbers to real ways to save money and reduce taxes.

What’s the Real Deal With Crypto Mining in 2024?

When I first got into crypto mining, it was 2017 and things were completely different. Back then, all you needed was a decent GPU setup, and if you were lucky enough to live somewhere with low electricity prices, you could easily pull in a solid return on investment in a few months. I remember earning enough Bitcoin with my first rig to cover its cost in under 60 days. It felt like money was just rolling in. But things have changed a lot.

Now in 2024, crypto mining is a whole new game. First off, the difficulty of mining Bitcoin and other major cryptocurrencies has skyrocketed. Bitcoin’s algorithm adjusts to the number of miners on the network. More competition means harder problems to solve, which means you need more powerful machines just to get the same results. That means more electricity, more cooling, more costs, and, frankly, more headaches.

Ethereum used to be the go-to coin for GPU miners. But ever since Ethereum moved to a proof-of-stake model, GPU mining took a huge hit. People who were relying on Ethereum now had to switch to smaller altcoins, many of which don't have the same long-term stability or value. It's a tougher field now, filled with uncertainty and smaller margins.

For someone mining in the UK, things get even trickier. Electricity prices have gone up, and we don't have access to the cheap power rates that miners enjoy in places like Iceland or parts of the US. You're looking at around 30p per kilowatt hour here in the UK, which is among the highest in Europe. So unless you've got a smart strategy or an edge in your setup, making a real profit can feel like pushing uphill.

Is It Still Worth the Grind?

Let’s be honest, crypto mining isn’t what it used to be. When you start calculating all the costs that go into it—especially here in the UK—it can get pretty discouraging. I ran some tests earlier this year using an Antminer S19 XP, which is considered one of the more efficient machines out there. The machine itself cost me close to £4,000, and it draws about 3,010 watts of power.

Running it 24/7, my electricity bill came out to roughly £650 per month. That’s just to keep the machine going. Then you’ve got the other costs—cooling the space, maintaining the gear, paying for internet, and of course, your own time. After all that, I mined about 0.015 Bitcoin in one month, which came out to about £375 with the current Bitcoin price hovering around £25,000.

So let’s break that down. I earned £375 in crypto, but spent £650 just on electricity. That means I lost £275 that month. And I haven’t even factored in the cost of the rig itself, which would take a long time to recover at this rate. You can see how quickly things can spiral into the red.

But that doesn’t mean there’s no hope. There are still miners turning a profit, but they’ve found ways to reduce their costs. Some use solar panels or other renewable energy sources to cut their electricity bills. Others are mining altcoins that still have low difficulty and decent value. And many are joining mining pools, which combine computing power and share the rewards. That helps smooth out the income and makes it less risky.

Another common strategy is to mine now and hold the coins, hoping the price goes up. This isn’t a guarantee, of course, but it can pay off if you’re patient and don’t need the cash right away. The point is, mining is no longer a passive income tool—it’s a business, and you need to treat it like one if you want to make it work.

What’s Eating Up the Profits?

A lot of people think crypto mining is only about hardware and coin prices, but that's not the full story. What really eats into your profits are all the hidden costs. First and foremost—electricity. This is the big one. In the UK, the cost of power can make or break your mining setup. Even a small difference in rates can mean the difference between profit and loss. If you're paying 30p per kilowatt-hour or more, then you’re in the danger zone unless you’ve got super-efficient hardware or free power.

Then there’s hardware wear and tear. Your mining gear doesn’t last forever. These machines run hot and loud, and parts wear out. Fans break, power supplies fail, and heat causes issues. When I had three rigs running in my garage, I was swapping out parts every few months. That adds up. And with how fast tech moves, your expensive machine could become outdated in just a year or two.

And don't forget the upfront cost of the rig. A good ASIC machine can cost between £2,000 to £10,000 depending on how new and efficient it is. You’ve got to mine enough just to make that money back before you even turn a profit. A lot of people don’t realize how long that could take if electricity is draining half their earnings.

Other hidden costs include cooling. In the summer, I had to buy portable AC units to keep temps under control. Otherwise, my gear kept shutting off. That was another £200 a month. So yeah, profits are possible, but only if you're super careful with costs and know what you’re getting into.

The Role of UK Crypto Tax Advisors

This is where it gets serious. Even if you manage to earn some crypto from mining, the tax man wants a slice. A lot of beginners get caught out because they don’t know the rules. That’s where a UK crypto tax advisor really becomes your best friend. They know exactly how to treat crypto mining income under UK law. And trust me, it’s not simple.

If you’re mining as a hobby, HMRC might treat your rewards as miscellaneous income. But if you’re running it like a business, then they could consider it self-employment. That means you’ll have to pay income tax and National Insurance on your earnings. Plus, you’ll be expected to keep proper records—dates, values, wallet addresses, everything.

A cryptocurrency accountant can help make sense of it all. They know how to report it properly and help you claim back some expenses. Yes, you can deduct electricity costs, hardware depreciation, and even part of your internet bill if it’s used for mining. But only if you’ve got solid records and proof. That’s why I always tell new miners to talk to a tax advisor before starting.

I once skipped that step, and it cost me. HMRC sent me a letter asking about my earnings for the year. I had to scramble to pull everything together—wallet histories, exchange records, invoices for my rig. It was a nightmare. If I’d just spoken to a UK crypto tax advisor from the start, I could’ve saved money and avoided the stress.

Can You Really Avoid Paying Crypto Tax in the UK?

This is one of the most common questions I get—how to avoid paying tax on cryptocurrency in the UK. Here's the truth: you can’t avoid tax completely, but you can reduce it legally with smart planning. The goal isn’t to dodge the taxman—it’s to stay compliant while keeping more of your money.

One strategy that works is holding your mined crypto. You only pay tax when you sell it. So if you mine Bitcoin and just keep it in your wallet, you haven’t made a taxable event yet. Of course, this only works if the coin’s value goes up later. If it drops, you’re stuck holding something worth less.

Another tip is to track your costs. A crypto tax advisor can help you list every deductible expense—electricity, hardware, cooling, repairs. These reduce your profits on paper, which means less tax owed. It’s not magic—it’s just proper accounting.

And finally, think about how you register. If you’re making regular income from mining, it might make sense to register as a sole trader or even a limited company. This opens up more tax allowances. Again, a good UK cryptocurrency accountant can walk you through the pros and cons.

So no, you can't completely avoid tax. But you can avoid overpaying. That’s the key. And doing it right from the start means you won’t get hit with a surprise letter or fine later on.

What Crypto Audit Companies Look For

Now here’s something most miners don’t think about until it’s too late—audits. If your mining activities catch the eye of HMRC or you’ve got a large amount of crypto moving in and out of wallets, you might end up dealing with a crypto audit firm. These companies specialize in going through all your crypto transactions to make sure everything lines up with tax rules.

Crypto audit companies dig deep. They’ll look at every wallet, every transaction, every exchange. If you’ve been mining and selling coins, they want to see timestamps, sale prices, costs, and even the original coin value when mined. It’s a lot of data, and if you’re not organized, you’re going to be in trouble.

The best advice I got was to use tracking software right from the beginning. I started using Koinly and CoinTracking early on. It links to your wallets and exchange accounts, and it helps keep records clean and ready if you ever need to show them. When I spoke to a crypto audit company once—just to understand the process—they told me they love when people use software because it speeds everything up and reduces errors.

The reason this matters is because HMRC can go back several years during an audit. If they find missing info, unreported gains, or undeclared mining income, they can hit you with penalties or back taxes. Working with a UK crypto tax advisor or a UK cryptocurrency accountant who understands audit procedures can save you from a lot of stress later.

Smart Moves to Keep Mining Profitable

Alright, so if you’re still interested in mining despite the challenges, there are smart ways to make it work. I’m not going to sugarcoat it—this isn’t a get-rich-quick thing anymore. But if you treat it like a business and make smart choices, you can still come out ahead.

First, go for efficiency. Don’t just grab the most powerful machine—look at power usage too. ASIC miners like the Antminer S19 XP or Whatsminer M50S have decent hash rates and lower power draw, which is key in the UK where electricity is expensive. Efficiency matters more than raw speed.

Second, find cheaper electricity if you can. Some people set up in sheds with solar panels, and others switch to off-peak energy plans. If you’re lucky enough to have access to industrial rates or business contracts, that can help too. Every penny saved on electricity goes straight into your pocket.

Third, track everything. Keep receipts, log your mining times, note your energy usage. Not only will this help with taxes, but you’ll also see exactly where your money’s going and where you can cut costs.

Fourth, join a mining pool. Solo mining is tough now because of the high difficulty levels. In a pool, your chances of steady income go way up because rewards are shared across many miners. Yes, it’s a smaller cut, but it's better than mining for weeks with no payout.

Lastly, work with the right pros. A UK crypto tax advisor will make sure you don’t pay more than you should. Crypto audit companies can help keep you prepared for anything HMRC throws your way. And a UK cryptocurrency accountant can help you run your mining like a real business.

The Verdict: Is It Still Worth It in 2024?

So here’s the honest truth—crypto mining in the UK in 2024 isn’t dead, but it’s not easy money either. The golden days of plugging in a GPU and watching the coins stack up are gone. Now, it’s about careful planning, cutting costs, and getting the right advice.

If you’re someone who’s willing to track expenses, invest in efficient hardware, and work with a UK crypto tax advisor or accountant, you can still make a profit. You’ve just got to treat it like a business. The ones who make money now are the ones who treat mining seriously—not just as a side hustle, but as a long-term project with strategy behind it.

I've made it work by constantly tweaking my setup, watching market trends, and working with pros who understand the tax side of things. I didn’t always get it right—early on I made a lot of mistakes. But now I’m mining smarter, not harder.

If you’re ready to put in the work, then yes—mining can still be worth it in 2024. But if you're just hoping for easy money without planning, it’ll probably leave you disappointed. Make smart choices, get professional advice, and you’ll give yourself the best shot at success.

Next up, you might want to read about how to set up a legal crypto mining business in the UK—that’ll walk you through structure, licenses, and long-term tax planning. Stay smart and stay mining.