Up to 20% of Bitcoin Miners Operating at a Loss

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.

Hashprice decline pushed miners into losses

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.

At the same time, network hash rate remained near record highs. This pushed hashprice down to post-halving lows.

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.

Miners without access to electricity below $0.05/kWh are experiencing negative cash flow.

BTC decline and rising difficulty reduced mining profitability

The weighted average cost of production for publicly listed miners reached $79,995 per BTC in Q4 2025.

Key drivers include:

• rising electricity costs;
• increasing network difficulty;
• capital expenditures in AI and HPC infrastructure.

Additionally, the network experienced three consecutive negative difficulty adjustments in late 2025. This pattern had not been seen since 2022 and indicates miner capitulation.

Seasonal energy costs and grid curtailments, particularly in the US, further reduced profitability.

Miners are reducing BTC holdings to maintain liquidity

Margin compression is already changing market behavior. Public miners have started reducing their BTC holdings to maintain liquidity.

Companies such as Core Scientific, Bitdeer, and Riot have liquidated significant portions of their reserves.

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.

Efficient miners gain a competitive advantage

The current environment is accelerating market consolidation. Efficient operators with low-cost energy and next-generation hardware remain profitable.

Meanwhile, less efficient miners face increasing pressure to upgrade or exit the market.

Diversification is also gaining momentum. Many operators are reallocating capacity toward AI and HPC workloads to secure more stable revenue streams.

As a result, the mining industry is evolving into a more capital-intensive and efficiency-driven sector.

Read also: Bitcoin Mining Costs Surpass $100,000