Profitability Index Hits Record Low
The CryptoQuant miner profit/loss sustainability index slid to 21, the lowest reading since November 2024. The drop reflects a sharp fall in Bitcoin’s price combined with a high mining difficulty, leaving miners “extremely underpaid.”
Winter Storm Further Reduces Hash Rate
A severe winter storm that blanketed the eastern United States caused power outages and equipment shutdowns, pushing the network’s hash rate down for the fifth consecutive epoch. The hash rate now sits at its lowest level since September 2025.
The storm also drove daily mining revenues to a yearly low of $28 million.
Impact on Mining Companies and Bitcoin Price
Shares of publicly traded miners such as MARA Holdings, CleanSpark, and Riot Holdings fell by double‑digit percentages over the past five trading days. Bitcoin itself slipped 6 % in the last week, trading around $83,956—about 33 % below its October all‑time high of $126,080.
Rising Electricity Costs and Operational Shifts
Data from the Cambridge Bitcoin Electricity Consumption Index shows that it now costs more to mine a Bitcoin than to purchase one on the open market. In response, some miners, including Bitfarms and Bit Digital, are winding down operations to pursue more profitable business models.
Outlook
With Bitcoin’s price pressure, elevated electricity costs, and weather‑related hash‑rate disruptions, miners face a challenging environment. The sustainability of mining profitability will likely depend on price recovery, improvements in energy efficiency, and the ability to mitigate external shocks such as severe weather events.