CoinShares: a chunk of the global Bitcoin mining fleet is now unprofitable A new CoinShares report warns that sustained low Bitcoin prices and near‑record network hashrate have squeezed mining margins so tightly that a meaningful slice of the global fleet is running below breakeven. Q4 2025 was “the hardest quarter for Bitcoin miners since the April 2024 halving,” the firm says, as hashprice fell to five‑year lows and operating costs rose. Key figures and takeaways - Among listed miners, the weighted average cash cost to mine one Bitcoin rose to roughly $79,995 in Q4 2025. - Hashprice — the revenue earned per PH/s per day — plunged to about $29/PH/s/day in Q1 2026, according to CoinShares. - Hashrate Index later reported a modest rebound: USD hashprice climbed 4.9% in the week to March 23, reaching $33.65/PH/s/day (up from $32.08). Even so, roughly $33/PH/s/day remains at or below breakeven for many operators depending on hardware and power pricing. - CoinShares says any miner running hardware older than an Antminer S19 XP at electricity costs of $0.06/kWh or higher is likely losing money with hashprice around $30/PH/s/day. That cohort represents an estimated 15–20% of the global fleet. - The network has already started to adjust: Bitcoin’s difficulty was cut 7.76% on March 20 to 133.79 trillion, easing the work required per block and giving relief to miners who stayed online. Why this matters - The current economics don’t support a broad hardware refresh — weaker returns are depressing cash flow and balance sheets, so many operators can’t afford major upgrades. - Pressure is greatest on miners with older rigs, poor energy contracts, or higher operating costs. Large operators with newer, more efficient machines and cheaper power retain more runway. - CoinShares warns higher‑cost miners could capitulate further in H1 2026 unless Bitcoin recovers. Outlook CoinShares head of research James Butterfill said: “If prices were to stay below US$80k for the remainder of the year, we forecast the hashprice to continue to fall.” He added that in that scenario “the hashprice would more likely flatline” as unprofitable rigs are switched off and network hashrate declines. Bottom line: the mining sector is consolidating toward operators with structural advantages — low‑cost power, better machine efficiency, and the flexibility to pivot into related businesses such as AI and data‑center services. Watch Bitcoin’s price, network hashrate and hashprice, and forthcoming difficulty adjustments to gauge how deep this squeeze becomes. Read more AI-generated news on: undefined/news

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