Bitcoin Mining Profitability Crisis: Hash Price Sinks, Up to 20% Rigs Loss

CoinShares reports a worsening Bitcoin mining profitability crisis. In its March 2025 analysis, up to 20% of Bitcoin mining rigs may be operating at a loss as hash price falls to roughly $28–$30/PH/s—far below 2021 peak levels (>$100/PH/s). This implies about 15%–20% of the global fleet is below break-even, with electricity cost now the decisive factor. After the April 2024 halving (block rewards down 50%), miner revenue is under pressure while network hash rate rises. CoinShares highlights that mid-generation hardware such as the Antminer S19 XP can turn negative cash flow when power costs are around or above ~$0.05/kWh; higher-cost regions (>~$0.08/kWh) face sharper stress. Lower-cost areas may keep only thin margins. The report also flags “miner capitulation” signals, including consecutive difficulty downs and hash ribbon weakness (short-term hash rate slipping below long-term), similar to past shakeouts. Some miners are pivoting toward AI and high-performance computing (AI & HPC) data-center services to bridge cash strain. Traders should watch for continued Bitcoin selling pressure from financially stressed operators in the short term, even as consolidation could improve network resilience later.