CoinShares’ Q1 2026 Bitcoin mining report shows profitability has tightened, pushing a meaningful share of the global fleet below breakeven. Hashprice—a standard measure of miner revenue per PH/s/day—fell to about $28 PH/s/day in February 2026, a post-halving low that compressed margins across the sector. Hashrate Index data later put hashprice nearer $33 PH/s/day, but that remains among the weakest readings in the past five years.
CoinShares estimates roughly 15%–20% of the worldwide mining fleet is currently unprofitable at these hashprice levels. The weakest operators tend to be those running older or mid-generation machines and miners facing higher electricity costs. The firm emphasizes this is not purely a cyclical downturn: structural advantages such as more efficient hardware and access to very low-cost power are increasingly decisive for survival.
Network indicators already reflect strain. On March 20, Bitcoin’s mining difficulty dropped about 7.7%—one of the largest single declines this year—reducing the computational work required to find a block and offering temporary relief to miners that remain online.
According to the report, mid-generation rigs are generally operating below breakeven at current hashprices unless they secure extremely cheap power. Mid-gen machines often need power below roughly $0.05 per kWh (frequently cited as sub-5 cents) to be cash-profitable, while the newest-generation fleets can maintain meaningful margins at typical industrial electricity rates.
James Butterfill, head of research at CoinShares, warned that prolonged weak BTC prices would intensify pressure on miner economics. The report models a scenario in which prices remain under $80,000 for the rest of the year; in that case, hashprice would likely continue to drift down or stagnate, forcing unprofitable rigs offline and slowing hashrate growth as marginal operators exit.
CoinShares concludes the combined effects of softer prices, eventual increases in difficulty, and muted transaction-fee income are accelerating consolidation in the industry toward miners with efficient hardware and access to inexpensive electricity.
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