Bitcoin mining is becoming increasingly challenging, with a growing number of operations slipping below profitability, according to a report by asset manager CoinShares.
In its Q1 2026 mining report, the firm noted that hashprice—a key indicator of miner earnings—dropped to around $28 per petahash per second per day (PH/s/day) in February, marking a new low since the latest halving and squeezing profit margins across the industry.
Recent data from Hashrate Index shows a modest recovery to roughly $33 PH/s/day, but levels remain near five-year lows. Even with this improvement, CoinShares estimates that about 15% to 20% of the global Bitcoin mining fleet is currently unprofitable, especially operators using older equipment or paying higher electricity costs.
The report indicates that this pressure may be more than just a temporary cycle. Instead, it is increasingly favoring miners with structural advantages, such as more efficient hardware or access to cheaper power. Declining Bitcoin prices, rising network difficulty, and weak transaction fees have all contributed to the ongoing squeeze on miner revenues.
This strain is also visible in network metrics. On March 20, Bitcoin mining difficulty dropped by approximately 7.7%, one of the steepest declines this year, reflecting sustained pressure on miners. Lower difficulty reduces the computational effort required to mine new blocks, providing some relief for those still operating.
Higher-cost Bitcoin miners are coming under increasing strain as profit margins hover near breakeven levels.
According to CoinShares, operators using mid-generation hardware are already running at a loss at current hashprice levels, particularly those paying around $0.05 per kilowatt-hour or more for electricity. To remain cash-profitable, these miners would need access to power priced below five cents per kWh, while those running newer, more efficient equipment can still maintain solid margins at standard industrial energy rates.
CoinShares also warned that mining economics could face further pressure if Bitcoin prices remain weak. James Butterfill, the firm’s head of research, noted that a prolonged downturn may force miners to shut down unprofitable machines, potentially slowing hashrate growth and helping stabilize returns.
He added that if Bitcoin prices stay below $80,000 for the rest of the year, hashprice is likely to keep declining. In that scenario, it could eventually level off as less efficient operators exit the network.
