JPMorgan Says 20% of Miners Operating at a Loss as Bitcoin Trades Below Production Cost

Bitcoin Miners Sold 32,000 BTC successful Q1 arsenic JPMorgan Flags Growing Profit Pressure

Bitcoin miners are nether increasing strain successful 2026 arsenic the marketplace terms of the plus remains good beneath the estimated outgo of producing it, according to JPMorgan.

JPMorgan analysts said bitcoin has traded beneath its estimated accumulation outgo for 5 consecutive months. JPMorgan presently places that outgo astatine astir $78,000 per coin, portion Bitcoin is trading adjacent $63,000.

That spread has near astir 20% of miners unprofitable, the slope said, citing Coinshares’ first-quarter mining report. The unit is already showing up connected equilibrium sheets. Publicly listed mining companies sold much than 32,000 BTC successful the archetypal 4th unsocial to screen operating expenses, JPMorgan said, citing information from TheEnergymag.

That fig exceeds the full magnitude those companies sold during each of 2025.

Source: TheEnergymag

Mining Difficulty Is Reacting Faster to Price Swings

JPMorgan said Bitcoin’s hashrate and mining trouble person go much delicate to terms movements this year. Hashrate measures the full computing powerfulness securing the network, portion mining trouble adjusts to support artifact accumulation dependable arsenic miners participate oregon permission the market.

Over the past six months, the beta of mining trouble to bitcoin prices has risen to 0.62. The analysts said this suggests much miners are operating adjacent to breakeven and are quicker to crook machines connected oregon disconnected arsenic prices shift.

The signifier was disposable successful the 2nd week of June, erstwhile bitcoin mining trouble fell 10%. It was the 2nd driblet of that size this year, pursuing a akin diminution successful January.

When bitcoin trades beneath accumulation cost, higher-cost miners thin to powerfulness down equipment. That reduces the hashrate and yet leads the web to set trouble lower. The mechanics helps stabilize mining economics, but it besides highlights however bladed margins person go for weaker operators.

Source: Coinshares

Volatility Expected to Persist

JPMorgan expects mining trouble and hashrate to stay volatile arsenic agelong arsenic bitcoin stays materially beneath its accumulation cost. The slope said investors should expect larger and much predominant mining trouble adjustments portion miners proceed responding to terms pressure.

The outlook adds different situation for a assemblage already dealing with rising vigor costs, post-halving gross pressure, and expanding contention from larger mining firms with stronger equilibrium sheets.

For now, the connection is clear. Bitcoin’s terms is investigating the economics of the mining industry, and the unit is falling hardest connected operators without inexpensive power, businesslike machines, oregon capable superior to thrust retired the downturn.