15-20% of the global fleet operates in red

The hash price collapse driven by BTC correction and record network difficulty leaves a large portion of miners in the red.

The current retail price environment is putting pressure on the profitability of Bitcoin miners. CoinShares estimates that 15-20% of the global mining fleet is operating at a loss at the current retail price of $28-30 per PH/day.

In the fourth quarter of 2025, Bitcoin fell approximately 31%, from an all-time high in early October of around $126,000 to around $86,000 by late December, while the network hash rate remained near record levels, pushing hash prices to post-halving lows.

Mining at a loss

According to the latest findings from CoinShares, miners running mid-generation hardware, including models below the S19 XP, faced negative cash flow unless they had access to very cheap electricity, typically less than $0.05 per kilowatt-hour. These conditions put approximately one-sixth to one-fifth of global mining capacity below break-even, a clear signal of pressure on older, less efficient operators.

Report Found The weighted average production cost of publicly listed miners reached $79,995 per bitcoin in Q4 2025, as a result of higher electricity costs, increased consumption from new AI and high-performance computing infrastructure, and increased network difficulty. With retail prices under pressure, the report identifies three consecutive negative adjustments in late 2025. This is a rare event not seen since July 2022, and signals miners are capitulating.

Operators running legacy S19 series equipment have been particularly affected, as winter energy costs and ERCOT grid downturns have increased uneconomic mining hours. CoinShares noted that sector margin pressure has forced some miners to diversify. A growing number are moving towards AI and HPC workloads that promise higher and more stable returns compared to periodic Bitcoin mining.

Despite sector-wide pressure, CoinShares reported that the network hash rate has shown resilience. The global network hash rate peaked at around 1,160 EH/s in October 2025 before declining by approximately 10% by December and early 2026 due to uneconomic operations and regulatory inspections in Xinjiang, China.

Miners reduce BTC holdings

By early March 2026, the network had stabilized near 1,020 EH/s, suggesting that strategic miners with access to low-cost power, state-backed operations, or next-generation ASICs continue to operate profitably even as mid-generation fleets struggle. The report also shows that publicly listed miners have reduced their Bitcoin holdings in response to tight profit margins, while Core Scientific, Bitdeer and Riot have all reduced them. Filtered Large sums of money from their coffers.

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Meanwhile, the retail price recovery is closely linked to Bitcoin price movements. At current levels of around $30/hour/day, only the most efficient miners remain cash positive, while older, less efficient fleets face losses. A stable BTC price above $70,000 could ease the pressure, while prolonged weakness would likely lead to additional capitulation for miners.