The current hash price environment is squeezing Bitcoin miners’ profitability. CoinShares estimates that 15-20% of the global mining fleet is operating at a loss at the current hash price of $28-30 per PH/day.

In Q4 2025, Bitcoin fell nearly 31%, from an early October all-time high of almost $126,000 down to around $86,000 by late December, while the network hash rate remained nearly at record levels, driving hash prices to post-halving lows.

Mining at a Loss

According to the latest findings by CoinShares, miners using mid-generation hardware, specifically models below the S19 XP, are facing negative cash flow unless they have access to ultra-cheap electricity, generally under $0.05/kWh. These conditions have led to roughly one-sixth to one-fifth of the global mining capacity sitting below breakeven, which clearly signals pressure for older and less efficient operators.

The report found that the weighted average cost of production for publicly listed miners reached $79,995 per Bitcoin in Q4 2025, stemming from higher electricity costs, increased depreciation from new AI and HPC infrastructure, and escalating network difficulty. With hash prices compressed, the report identifies three consecutive negative difficulty adjustments in late 2025. This occurrence is rare and hasn’t been seen since July 2022, indicating miner capitulation.

Operators using legacy S19-series equipment were particularly affected, as winter energy costs and ERCOT grid curtailments intensified uneconomic mining hours. CoinShares noted that the sector’s margin compression has compelled several miners to diversify. An increasing number have pivoted towards AI and HPC workloads that promise higher and more stable returns compared to the cyclical nature of Bitcoin mining.

Despite the widespread strain on the sector, CoinShares reported that the network hash rate has demonstrated resilience. The global network hash rate peaked around 1,160 EH/s in October 2025 before dipping roughly 10% by December and early 2026 due to uneconomic operations and regulatory checks in Xinjiang, China.

Miners Reduce BTC Holdings

By early March 2026, the network had stabilized near 1,020 EH/s, indicating that strategic miners with access to low-cost energy, state-backed operations, or next-generation ASICs are continuing to operate profitably even as mid-generation fleets struggle. The report further highlights that publicly listed miners have reduced their BTC holdings in response to tight margins, with Core Scientific, Bitdeer, and Riot all having liquidated significant amounts from their reserves.

Meanwhile, recovery in hash prices is closely tied to BTC price movements. At current levels around $30/PH/day, only the most efficient miners remain cash-positive, while older and less efficient fleets encounter losses. A steady BTC price above $70,000 could relieve some pressure, whereas extended weakness is likely to trigger additional miner capitulation.