Conditions for mining the premier cryptocurrency have become so stringent that much of the equipment worldwide is operating at a loss, according to a report by CoinShares.
Analysts noted that the fourth quarter of 2025 was the most challenging for bitcoin miners since the last halving. The average cost of mining one coin for public companies reached $79,995.
Meanwhile, the hashprice dropped to $36-38 per PH/s per day. Three consecutive negative difficulty adjustments, recorded for the first time since July 2022, signaled miner capitulation.
In the first quarter, the figure fell even further to $29, indicating new challenges for the industry, analysts noted.
At the time of writing, the figure had recovered to $33.6, yet it remains one of the lowest levels in five years.
The pressure on miners has already impacted the network. On March 20, bitcoin mining difficulty plummeted by 7.7% — one of the sharpest declines this year.
Unprofitable Operations
CoinShares experts estimate that 15-20% of miners are operating at a loss. Those at risk include operators with outdated equipment and high electricity costs.
Miners using mid-generation devices are operating below the break-even point at the current hashprice — particularly if they pay over $0.05 per kWh for electricity. To remain profitable, they need rates below this threshold.
Modern farms maintain high margins even at standard industrial rates.
Analysts warned that stagnation in bitcoin’s price will worsen the situation for market participants. According to James Butterfill, head of research, a prolonged downturn will lead to the shutdown of unprofitable operations, slowing the growth of the hashrate and eventually balancing profitability.
“If the price does not rise above $80,000 by the end of the year, the hashprice will continue to decline and then likely plateau. This will occur as weaker players exit the network,” he suggested.
Specialists believe the current situation is not a cyclical phenomenon but a structural narrowing of the circle of viable operators. Only those with structural advantages, such as efficient equipment and access to cheap electricity, will survive.
At the time of writing, the leading cryptocurrency is trading around $69,300. Over the past day, the asset’s price has fallen by 3% (CoinGecko).
In March, Wintermute analysts declared the traditional bitcoin mining model obsolete.