CoinShares Finds Up to 20% of Bitcoin Mining Fleet Unprofitable

TLDR

• Up to 20% of Bitcoin miners now operate below profitability levels

• Falling hashprice to $28 squeezes global Bitcoin mining margins

• Older mining rigs struggle as energy costs exceed breakeven levels

• Difficulty drop signals rising pressure and miner shutdowns globally

• Efficient miners gain as weaker Bitcoin mining players exit market

Bitcoin Mining margins tightened sharply as CoinShares identified up to 20% of the global fleet operating below profitability. Declining hashprice and rising costs reduced earnings across operators. Bitcoin Mining now favors efficient fleets with access to cheaper power.

Bitcoin Mining Profitability Declines Across Global Fleet

Bitcoin Mining revenue weakened as hashprice dropped to near $28 per PH/s/day in February 2026. Moreover, the level marked a post-halving low and compressed operator margins. Many firms struggled to sustain daily operations under reduced earnings.

Hashprice later recovered to around $33 per PH/s/day, yet remained near multi-year lows. However, this recovery did not restore profitability for several operators. Bitcoin Mining conditions continued to pressure weaker participants.

CoinShares estimated that 15% to 20% of Bitcoin Mining capacity now runs below profitability thresholds.  Operators with outdated machines and higher costs faced the most strain. As a result, the sector showed clear signs of structural pressure.

Higher Costs and Older Hardware Drive Mining Losses

Bitcoin Mining economics weakened further for operators using mid-generation machines and standard power rates. Miners paying above $0.05 per kilowatt-hour faced shrinking margins. Consequently, many operations approached or fell below breakeven levels.

The report showed that hardware below Antminer S19 XP struggled under current revenue conditions. These machines required cheaper electricity to remain profitable. Therefore, Bitcoin Mining increasingly depends on efficiency and energy cost advantages.

CoinShares noted that current revenue levels discourage large-scale hardware upgrades. Moreover, weak cash flow limited expansion plans for many operators. As a result, Bitcoin Mining investment activity slowed across the sector.

Network Adjustments Reflect Ongoing Mining Pressure

Bitcoin Mining strain appeared in network data as mining difficulty dropped about 7.7% on March 20. Moreover, the adjustment reduced computational demands for block production. Active miners received temporary operational relief.

Lower difficulty supported remaining operators, yet it reflected declining participation from weaker miners.  Falling hashrate growth indicated ongoing shutdowns of unprofitable rigs. Bitcoin Mining dynamics continued to shift toward stronger participants.

CoinShares expects continued pressure if Bitcoin prices remain below key levels. Moreover, sustained weakness could force further exits from the network. As a result, Bitcoin Mining may stabilize only after weaker operators reduce overall competition.

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