Bitcoin (BTC) mining is experiencing renewed pressure as the hash rate has fallen below a significant threshold last seen in late 2025. One expert suggests that the growing demand for AI and expansions by manufacturers are changing how miners participate in the network.

StandardHash’s CEO, Leon Lyu, cautioned that this decline, which marks the first instance of the network’s seven-day average hash rate dropping below 1 ZH/s since September of the previous year, signifies increased challenges for miner profitability. He anticipates a negative difficulty adjustment of approximately 4.34% in about three days, attributing the decrease to multiple factors, including substantial mining firms shifting power capacity to more lucrative AI compute services.

Lyu emphasized: ‘The decline indicates mounting pressure on miner profitability.’
Translation: Lyu emphasized: ‘The decline indicates mounting pressure on miner profitability.’

Additionally, Lyu pointed out the rising influence of mining hardware manufacturers, particularly noting Bitdeer’s aggressive deployment of proprietary rigs as they aim to become the leading North American miner by hash rate. He mentioned that Bitmain is also expanding its mining operations through various partnerships, despite the overall downward trend in network hash rate.

As the battle for energy resources intensifies between BTC miners and AI data centers, there have been numerous reports from publicly traded mining firms revealing plans to repurpose or co-locate their infrastructure for high-performance computing and AI workloads. Concurrently, US and European grid operators have flagged increasing power demands from AI facilities, often securing long-term electricity contracts. Studies have indicated that AI operations tend to earn significantly more revenue per megawatt than Bitcoin mining, further escalating the pressure on miners during periods of low hash price.

Mining’s Toughest Year

These shifts come on the heels of a particularly challenging year for Bitcoin miners. Data from December revealed that the BTC mining sector faced unprecedented pressures, marked by some of the lowest profit margins in its 15-year history. Mining revenue has plummeted due to a decrease in hash price, which fell from roughly $55 per unit to about $35.

The report characterizes this downturn as a long-term low rather than a fleeting dip. The situation deteriorated following Bitcoin’s price drop from nearly $126,000 in October, compounding the strain on ongoing mining operations.