CoinShares says up to 20% of Bitcoin miners are unprofitable

Bitcoin mining economics are tightening to levels that are pushing a portion of the global fleet below profitability, according to a report from asset manager CoinShares.

In its Bitcoin mining report for Q1 2026, CoinShares said hashprice, a key measure of miner revenue, fell to around $28 per petahash per second per day (PH/s/day) in February 2026, marking a new post-halving low and compressing margins across the sector.

At the time of writing, mining data provider Hashrate Index shows that hashprice has recovered to about $33 PH/s/day, though it remains among the lowest levels seen in the past five years. Even with the recovery, CoinShares estimates that roughly 15% to 20% of the global Bitcoin mining fleet is unprofitable at these levels, particularly among operators running older hardware or facing higher electricity costs.

The report suggests the downturn is not just cyclical but is increasingly narrowing the field of viable operators to those with structural advantages, such as more efficient fleets or access to low-cost power, as a mining squeeze driven by lower Bitcoin prices, rising network difficulty and weak transaction fees compresses miner revenue.

The squeeze has already started to show up in network data. On March 20, Bitcoin’s mining difficulty fell about 7.7%, marking one of the sharpest declines this year as pressure on miners persisted. A lower difficulty reduces the computational work required to mine a block, offering some relief to operators who remain online.

Bitcoin hashprice index. Source: Hashrate Index

Higher-cost miners face pressure as margins approach breakeven

CoinShares said miners running mid-generation hardware were operating below breakeven at current hashprice levels, particularly those paying around $0.05 per kilowatt-hour or more for electricity.

The report said miners using mid-generation hardware need access to sub-5 cent power to remain cash-profitable, while latest-generation fleets can still retain meaningful margins at typical industrial electricity rates.

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CoinShares expects further pressure on mining economics if Bitcoin prices remain subdued. James Butterfill, head of research at CoinShares, wrote that a sustained downturn could force miners to shut down unprofitable rigs, which may reduce hashrate growth and stabilize returns.

“If prices were to stay below $80k for the remainder of the year, we forecast the hashprice to continue to fall,” he wrote, adding that in such a scenario, “the hashprice would more likely flatline” as weaker operators exit the network.

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