CoinShares says up to 20% of Bitcoin miners are unprofitable

Bitcoin mining economics are tightening to levels that are pushing a information of the planetary fleet beneath profitability, according to a study from plus manager CoinShares. 

In its Bitcoin mining study for Q1 2026, CoinShares said hashprice, a cardinal measure of miner revenue, fell to astir $28 per petahash per 2nd per time (PH/s/day) successful February 2026, marking a caller post-halving debased and compressing margins crossed the sector. 

At the clip of writing, mining information supplier Hashrate Index shows that hashprice has recovered to astir $33 PH/s/day, though it remains among the lowest levels seen successful the past 5 years. Even with the recovery, CoinShares estimates that astir 15% to 20% of the planetary Bitcoin mining fleet is unprofitable astatine these levels, peculiarly among operators moving older hardware oregon facing higher energy costs.

The study suggests the downturn is not conscionable cyclical but is progressively narrowing the tract of viable operators to those with structural advantages, specified arsenic much businesslike fleets oregon entree to low-cost power, arsenic a mining compression driven by little Bitcoin prices, rising web trouble and anemic transaction fees compresses miner revenue.

The compression has already started to amusement up successful web data. On March 20, Bitcoin’s mining trouble fell astir 7.7%, marking 1 of the sharpest declines this twelvemonth arsenic unit connected miners persisted. A little trouble reduces the computational enactment required to excavation a block, offering immoderate alleviation to operators who stay online.

Bitcoin hashprice index. Source: Hashrate Index

Higher-cost miners look unit arsenic margins attack breakeven

CoinShares said miners moving mid-generation hardware were operating beneath breakeven astatine existent hashprice levels, peculiarly those paying astir $0.05 per kilowatt-hour oregon much for electricity.

The study said miners utilizing mid-generation hardware request entree to sub-5 cent powerfulness to stay cash-profitable, portion latest-generation fleets tin inactive clasp meaningful margins astatine emblematic concern energy rates.

Related: Omnes, Apex to tokenize Bitcoin mining vulnerability via structured enactment connected Base

CoinShares expects further unit connected mining economics if Bitcoin prices stay subdued. James Butterfill, caput of probe astatine CoinShares, wrote that a sustained downturn could unit miners to unopen down unprofitable rigs, which whitethorn trim hashrate maturation and stabilize returns.

“If prices were to enactment beneath $80k for the remainder of the year, we forecast the hashprice to proceed to fall,” helium wrote, adding that successful specified a scenario, “the hashprice would much apt flatline” arsenic weaker operators exit the network.

Magazine: Big Questions: Can Bitcoin prevention you from the dreaded Cantillon Effect?