Core

Bitcoin

Read

<p>As of early 2026, between 15% and 20% of global Bitcoin mining capacity is operating at a loss, according to CoinShares. The decline in hashprice to $28–30 per PH/day, combined with high network difficulty and lower BTC prices, is squeezing profitability. This trend highlights increasing pressure on the mining sector and signals structural changes across the industry.</p>
<h2 class="wp-block-heading" id="hashprice-decline-pushed-miners-into-losses">Hashprice decline pushed miners into losses</h2>
<p>Mining profitability declined sharply following a drop in BTC prices during Q4 2025. The price fell by approximately 31%, from around $126,000 to $86,000.</p>
<p>At the same time, network hash rate remained near record highs. This pushed hashprice down to post-halving lows.</p>
<p>CoinShares estimates that up to one-fifth of global mining capacity is now operating below breakeven. Mid-generation hardware, particularly units below the S19 XP class, is most affected.</p>
<p>Miners without access to electricity below $0.05/kWh are experiencing negative cash flow.</p>
<h2 class="wp-block-heading" id="btc-decline-and-rising-difficulty-reduced-mining-profitability">BTC decline and rising difficulty reduced mining profitability</h2>
<p>The weighted average cost of production for publicly listed miners reached $79,995 per BTC in Q4 2025.</p>
<p>Key drivers include:</p>
<ul>
 <li>rising electricity costs;</li>
 <li>increasing network difficulty;</li>
 <li>capital expenditures in AI and HPC infrastructure.</li>
</ul>
<p>Additionally, the network experienced three consecutive negative difficulty adjustments in late 2025. This pattern had not been seen since 2022 and indicates miner capitulation.</p>
<p>Seasonal energy costs and grid curtailments, particularly in the US, further reduced profitability.</p>
<h2 class="wp-block-heading" id="miners-are-reducing-btc-holdings-to-maintain-liquidity">Miners are reducing BTC holdings to maintain liquidity</h2>
<p>Margin compression is already changing market behavior. Public miners have started reducing their BTC holdings to maintain liquidity.</p>
<p>Companies such as Core Scientific, Bitdeer, and Riot have liquidated significant portions of their reserves.</p>
<p>Despite this pressure, the network hash rate remains resilient. After peaking at approximately 1,160 EH/s in October 2025, it declined by about 10% and stabilized near 1,020 EH/s.</p>
<h2 class="wp-block-heading" id="efficient-miners-gain-a-competitive-advantage">Efficient miners gain a competitive advantage</h2>
<p>The current environment is accelerating market consolidation. Efficient operators with low-cost energy and next-generation hardware remain profitable.</p>
<p>Meanwhile, less efficient miners face increasing pressure to upgrade or exit the market.</p>
<p>Diversification is also gaining momentum. Many operators are reallocating capacity toward AI and HPC workloads to secure more stable revenue streams.</p>
<p>As a result, the mining industry is evolving into a more capital-intensive and efficiency-driven sector.</p>
<p>Read also: <a href="https://ultramining.com/news/en/bitcoin-mining-costs-surpass-100000/" rel="noopener noreferrer nofollow">Bitcoin Mining Costs Surpass $100,000</a></p>

Up to 20% of Bitcoin Miners Operating at a Loss

Table of Contents

Ultramining_Eng

Other articles published on Apr 1, 2026

Join our free newsletter for daily crypto updates!