Bitcoin mining economics have tightened, pushing a portion of the global fleet below profitability, CoinShares reports. In its Q1 2026 Bitcoin mining report, CoinShares said hashprice—a key measure of miner revenue—fell to about $28 per PH/s/day in February 2026, a new post-halving low that compressed sector margins.
Hashrate Index data shows hashprice later recovered to roughly $33 PH/s/day, but remains among the lowest levels of the past five years. CoinShares estimates about 15%–20% of the global Bitcoin mining fleet is unprofitable at these levels, particularly operators running older rigs or paying higher electricity rates.
The report says the downturn is not purely cyclical and is narrowing viable operators to those with structural advantages—more efficient fleets or access to low-cost power—as lower Bitcoin prices, rising network difficulty and weak transaction fees squeeze miner revenue.
Network data already reflects the pressure. On March 20, Bitcoin’s mining difficulty fell about 7.7%, one of the sharpest declines this year, which lowers the computational work required to mine a block and offers relief to operators who stay online.
CoinShares notes mid-generation hardware is generally running below breakeven at current hashprices, especially for miners paying around $0.05 per kWh or more. Mid-gen miners typically need sub-5 cent power to remain cash-profitable, while the latest-generation fleets can retain meaningful margins at typical industrial electricity rates.
James Butterfill, head of research at CoinShares, warned that sustained weaker prices would further pressure mining economics. If prices stayed below $80,000 for the remainder of the year, CoinShares forecasts hashprice would likely continue to fall or flatline, potentially forcing unprofitable rigs to shut down and reducing hashrate growth as weaker operators exit.
The combination of lower prices, rising difficulty (when it resumes), and soft fee income is accelerating consolidation toward miners with efficient hardware and inexpensive electricity, the report concludes.
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