Gate News: Asset management firm CoinShares released its Q1 2026 Bitcoin mining report, showing that global Bitcoin miners are under significant profit pressure, with approximately 15% to 20% of mining farms operating at a loss. The report notes that the hash price fell to about $28/PH/s/day in February, hitting a new low since the halving, and although it later rebounded to around $33, it remains near a five-year low.
CoinShares analysis indicates that profit pressure mainly affects older mining hardware or miners with higher electricity costs. Mid-generation hardware is close to breakeven under typical industrial electricity rates, while the latest generation of miners can still maintain higher profits. As Bitcoin prices decline, network difficulty rises, and transaction fee revenue weakens, miners’ income is being squeezed.
Network data shows signs of stress. On March 20, Bitcoin mining difficulty dropped about 7.7%, the largest decrease this year, providing short-term relief for active miners. James Butterfill, Head of Research at CoinShares, stated that if Bitcoin prices remain below $80,000 for the rest of the first quarter of 2026, hash rate prices could continue to decline. However, as unprofitable miners exit, overall hash rate prices are expected to stabilize.
The report emphasizes that this downturn is not a cyclical fluctuation but a contraction of miners’ survival space. Only miners with structural advantages—such as efficient hardware or low-cost electricity—can remain profitable. CoinShares warns that prolonged downturns may force some mining farms to shut down, further impacting global hash rate distribution and network stability.
In a challenging Bitcoin market, miners need to evaluate electricity costs and hardware efficiency to decide whether to continue operations, while monitoring changes in hash rate prices and transaction fees to ensure sustainable mining activities.
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