In February 2026, the Bitcoin mining industry reached a historic turning point. As Bitdeer surged to the top of public mining companies in terms of proprietary hashrate thanks to its self-developed mining rigs, it made a move that shocked the market: liquidating its entire corporate Bitcoin holdings. At the same time, hashprice—a core metric for miner profitability—plunged to a record low of just $0.03 per TH, while the average network-wide mining cost deeply inverted against the Bitcoin price. Beneath these seemingly contradictory data points lies a profound transformation: mining is shifting from "holding for price appreciation" to "cash is king," and from energy competition to hashrate as a foundational infrastructure. This article examines the key events in mining during February, lays out the timeline, breaks down the data, scrutinizes the prevailing narratives, and explores possible industry scenarios for the future.
The Paradox of Peak Hashrate and Zero Holdings
On February 20, Bitcoin mining company Bitdeer released its weekly update, revealing that its proprietary BTC holdings had dropped to zero (excluding customer deposits). All 189.8 BTC mined that week were sold, resulting in a net position change of -943.1 BTC. Founder Jihan Wu responded that a zero balance now doesn’t mean it will remain that way, explaining the move as a proactive step to ensure liquidity for evaluating multiple non-binding power and land acquisition opportunities.
Ironically, during the same period, JPMorgan analysts noted that Bitdeer’s proprietary hashrate had reached 63.2 EH/s, surpassing MARA’s reported 60.4 EH/s and making Bitdeer the public mining company with the highest proprietary hashrate. The simultaneous occurrence of record hashrate and zero BTC holdings shattered the market’s traditional belief that "more hashrate means more coin accumulation" for miners.
Meanwhile, industry-wide profitability took a sharp downturn. According to Luxor Technology, February saw hashprice fall to around $0.03 per TH, an all-time low. Bloomberg reported that, with Bitcoin dipping below $70,000, rising energy costs, and the impact of U.S. winter storms, multiple mining firms were forced to shut down parts of their operations.
From Difficulty Spikes to Industry Pivot
The turbulence in Bitcoin mining during February was a continuation and acceleration of trends that began in the second half of 2025. Key milestones include:
- Early February: mempool founder tracking showed mining difficulty surged nearly 15% to 144.4 T, marking the largest single increase in absolute difficulty history and nearly erasing the previous major downward adjustment.
- February 9: The network experienced a historic 11%+ difficulty reduction, signaling a mass shutdown and exit of miners.
- February 20: Bitdeer announced the liquidation of its Bitcoin holdings, marking a major strategic shift among leading mining firms.
- Late February: MARA Holdings announced a partnership with Starwood Capital to convert part of its mining facilities into AI data centers, with an initial plan for 1 GW of capacity. Activist investor Starboard Value urged Riot Platforms to accelerate its pivot toward AI/HPC.
Reshaping Hashrate, Costs, and Capital Flows
February’s mining data clearly outlined the industry’s squeeze and growing divide. Key data comparisons:
| Metric | Data | Industry Impact Analysis |
|---|---|---|
| Mining Difficulty | Peaked at 144.4 T (largest increase ever), then dropped over 11% | Accelerated elimination of outdated rigs; sharp, short-term network hashrate volatility. |
| Hashprice | Fell to about $0.03 per TH (record low) | Most operations, except the most efficient, are running at a loss. |
| Production Cost | Average network-wide all-in BTC production cost: ~$87,000 | Deeply inverted against the BTC price (approx. $64,000–$72,000 during the period). |
| Leading Miner Hashrate | Bitdeer’s proprietary hashrate at 63.2 EH/s (top among public miners) | Hashrate growth no longer directly translates to BTC holdings, but serves new capital strategies. |
| Miner Holdings Changes | Bitdeer liquidated holdings; MARA may adjust HODL strategy | "Production" and "accumulation" functions are decoupling; miners are shifting from passive holding to active balance sheet management. |
The data show that simply relying on Bitcoin price appreciation can no longer cover rising energy and equipment costs. The survival model for miners is shifting from a "mine-hold-finance" cycle to a "mine-liquidate-reinvest (AI or new infrastructure)" model.
Market Divides and Narrative Clashes
The mining sector’s recent developments have sparked several core debates:
- Is liquidating holdings a sign of surrender or a strategic move?
Some analysts see Bitdeer’s liquidation as a sign that liquidity pressures have reached a breaking point for miners, especially with hashprice at record lows and BTC trading below average production cost. Others argue that the liquidation, paired with large convertible bond issuances and AI infrastructure investments, looks more like a proactive capital reset than a forced bankruptcy liquidation.
- Is the AI pivot a real solution or just hype?
Institutions like Morgan Stanley are bullish on converting mining sites into AI data centers, viewing miners’ access to power and land as scarce assets in an AI compute shortage. However, some analysts caution that AI data centers require much higher network latency and stability than Bitcoin mining, and not all sites are suitable for conversion. The massive capital expenditure could also introduce new financial risks.
- Will declining hashrate threaten network security?
As outdated rigs shut down, some worry that falling network hashrate could undermine Bitcoin’s security. But Paradigm’s research report takes the opposite view, arguing that Bitcoin mining should be seen as "flexible load demand" and a grid asset. Its adjustability actually supports grid stability, and long-term energy consumption is constrained by the halving mechanism, preventing unchecked growth.
"Miner Capitulation" and "AI Savior" Narratives
In February’s mining news, "miner capitulation" and "AI pivot" became the hottest topics—but both require a nuanced view.
Miner capitulation is real, but it mainly affects high-cost, inefficient operators. The February 9 difficulty reduction confirmed a wave of miner shutdowns. However, leading firms like Bitdeer and MARA aren’t "capitulating"—they’re leveraging their capital and hashrate advantages to actively reposition assets and restructure their businesses.
The "AI pivot" narrative risks oversimplification. While companies like MARA, Hut 8, and TeraWulf are indeed redirecting some capacity to AI/HPC, this shift requires years of construction and massive capital investment. Treating it as an instant fix for current profitability woes is overly optimistic. The transition is more about laying the groundwork for future revenue streams than providing an immediate hedge against mining losses.
Mapping Bitcoin’s Ecosystem to Capital Markets
Mining industry dynamics are triggering a chain reaction on multiple levels:
- For BTC market supply and demand: Leading miners shifting from "hoarding" to "liquidating" reduces the natural buffer against selling pressure. Miners were once natural long-term holders; now, they’re becoming more active sellers, which could alter Bitcoin’s supply dynamics. Bloomberg notes that miners holding over $8 billion in Bitcoin are accelerating sales, redirecting capital into the AI sector.
- For miner valuation logic: Capital markets are reassessing miner value. Morgan Stanley’s "REIT endgame" thesis suggests that miners who successfully pivot to AI infrastructure will enjoy more stable cash flows and higher valuation multiples. Conversely, firms relying solely on Bitcoin mining will see their stock prices remain highly sensitive to BTC price swings.
- For global hashrate distribution: As U.S. mining sites pivot to AI, some Bitcoin hashrate may exit permanently or shift to regions with lower energy costs and friendlier regulation (such as Russia, the Middle East, or South America). Canaan’s acquisition of Cipher Mining’s stake in a Texas facility and Russia’s moves to build mining centers both indicate a reshaping of the global hashrate landscape.
Scenario Forecasts for the Next 6–12 Months
Based on current data and trends, the mining sector could evolve along three main scenarios in the coming 6 to 12 months:
Scenario 1: Accelerated AI Integration
- Conditions: Bitcoin price remains below $80,000; strong demand for AI compute leasing.
- Outcome: More public miners follow Bitdeer and MARA, issuing bonds or selling BTC reserves to finance a rapid pivot of high-value power resources to AI/HPC. The industry stratifies, with some firms remaining "crypto miners" and others evolving into "digital infrastructure operators."
Scenario 2: Bitcoin Price Recovery and Hashrate Rebound
- Conditions: Macro environment improves; Bitcoin price climbs back to $90,000–$100,000.
- Outcome: Hashprice rebounds, and some idled rigs come back online. However, after the recent "liquidation wave," leading firms may not rebuild large BTC inventories, instead channeling new cash into dual business lines. The old holding strategy is unlikely to return.
Scenario 3: Liquidity Crisis and Accelerated Consolidation
- Conditions: Bitcoin price continues to fall or remains below $60,000 for an extended period.
- Outcome: Small and highly leveraged miners face mass bankruptcy (as seen with NFN8 Group’s February filing). The industry undergoes a new wave of M&A, with deep-pocketed, low-cost power giants snapping up assets at discounts, further increasing market concentration.
Conclusion
February 2026 marked a symbolic end of an era for Bitcoin mining. Bitdeer’s decision to liquidate its holdings at the same time as it reached peak hashrate signaled a break in the "mining equals hoarding" orthodoxy under the pressures of capital efficiency and survival. The record-low hashprice revealed the industry’s new normal of profitability challenges as Bitcoin enters a phase of high, volatile prices and ongoing halving effects.
The mass pivot to AI by miners is, at its core, a re-evaluation of how to monetize electricity. It’s both a reactive move to current hardships and a proactive bet on the next wave of technological change. For investors and observers, understanding mining now requires looking beyond Bitcoin price charts to power markets, AI compute demand, and the balance sheet management of public companies. The upheaval that began in February is propelling Bitcoin mining into a more complex—and more professional—new era.
