The euphoria of October’s file highs has evaporated, leaving the commercial spine of the Bitcoin community dealing with a brutal actuality examine.
In keeping with CryptoSlate’s knowledge, Bitcoin is at present buying and selling close to $78,000, a stage that represents a punishing decline of greater than 38% from its all-time excessive of over $126,000 simply 4 months in the past.
Whereas informal observers would possibly see a typical market correction, the view from contained in the mines is much extra dire. The steep drop within the flagship digital asset’s value has collided with stubbornly excessive community issue and rising power prices to create an ideal storm for operators.
Analytics agency CryptoQuant just lately described miners as “extraordinarily underpaid,” given the present mixture of depressed costs and issue, with its profit-and-loss sustainability index slumping to 21. That’s the lowest studying since late 2024.
Notably, the monetary pressure is already inflicting machines to go offline, leading to Bitcoin’s whole hashrate declining by about 12% since final November, the steepest drawdown because the China mining ban in 2021. This has left the community at its weakest stage since September 2025.
For a system that sells itself as essentially the most safe pc community on the earth, that is greater than only a bear-market story. It’s a stress take a look at of Bitcoin’s safety mannequin at a second when miners have better-paying options than ever earlier than.
Bitcoin miners’ capitulation maths
Bitcoin’s safety depends on a easy incentive construction through which the community pays a hard and fast block subsidy plus transaction charges to whoever solves the subsequent block.
When costs had been above $126,000 in October, the “safety funds” was enough to cowl inefficiencies. Nonetheless, the margin for error has vanished as costs have crashed beneath $80,000.
New figures from the mining pool f2pool illustrate how extreme the income compression has develop into.
On its Feb. 2 {hardware} electrical energy price dashboard, the pool estimates Bitcoin’s value at round $76,176, community hashrate at close to 890 exahashes per second (EH/s), and day by day income at about $0.034 per terahash for miners paying $0.06 per kilowatt-hour.
To place that in perspective, Luxor Know-how’s Hashrate Index recorded spot hashprice close to $39 per petahash per second (PH/s) per day only some months prior.
That determine was already skinny by historic requirements earlier than falling towards an all-time low of round $35 as of press time.
The present f2pool determine of $0.034 per terahash, equal to $34 per PH/s, confirms that miners are working on the historic ground.
When these economics are mapped onto particular person machines, it turns into clear why hashrate is falling.
At a reference Bitcoin value of $75,000 and the identical six-cent energy price, electrical energy accounts for about 52% of income for Bitmain’s latest Antminer S21 XP Hydro models, which mix roughly 473 TH/s of hashpower with 5,676 watts of draw. These are the very best numbers out there.
Because the effectivity curve worsens, the mathematics turns pink. Mid-generation rigs, similar to an Antminer S19 XP or an Avalon A1466i, exhibit electrical energy price charges of roughly 92%-100% at that value level.
In the meantime, older or much less environment friendly fashions, together with the Avalon A1366, Whatsminer M50S, and S19 Professional strains, present electrical energy price charges starting from roughly 109% to 162%.
In plain English, because of this at $75,000 Bitcoin and a mainstream energy tariff, huge fleets of {hardware} are mining at a money loss earlier than even accounting for debt, internet hosting charges, or basic bills.
The AI escape hatch
This present income crash differs from earlier crypto winters as a result of the miners’ distressed belongings, like energy contracts and grid connections, have a brand new, deep-pocketed suitor.
The identical infrastructure that allows Bitcoin mining is exactly what hyperscale AI compute requires. And in contrast to the struggling Bitcoin community, AI infrastructure suppliers are prepared to pay up.
The previous mining operation CoreWeave has develop into emblematic of this shift. It pivoted from crypto to develop into a specialist “neocloud” for AI workloads and just lately secured a $2 billion fairness funding from Nvidia to speed up its knowledge heart buildout.
In 2025, it sought to amass miner Core Scientific in a multibillion-dollar deal, explicitly framing miners’ websites and energy contracts as prime actual property for GPUs slightly than ASICs.
Different public Bitcoin miners have taken the trace and are pivoting onerous in the direction of AI. For instance, Canadian operator Hut 8 just lately signed a 15-year, 245-megawatt AI knowledge heart lease at its River Bend campus, with a acknowledged contract worth of roughly $7 billion.
This deal successfully locks in long-term economics that differ markedly from the volatility of mining rewards.
For shareholders, these pivots provide a rational exit from the bleeding attributable to the 30% value drop. They will swap cyclical Bitcoin revenues for contracted AI money flows that traders at present worth at a premium.
For the Bitcoin community, nevertheless, this raises a tougher query: what occurs when a part of its safety infrastructure discovers a enterprise that gives increased compensation?
Bitcoin’s community safety funds beneath siege
Jeff Feng, co-founder of Sei Labs, referred to as the present interval “the largest bitcoin miner capitulation since 2021,” arguing that giant miners pivoting to AI compute are amplifying the drawdown.
The important thing distinction from prior cycles is that a few of this hash isn’t simply powering down till the worth recovers. It’s being reallocated completely.
As soon as a 245 MW website is totally re-racked for AI beneath a long-term lease, that energy is, in observe, unavailable for future hashrate growth.
Make no mistake, Bitcoin stays extraordinarily safe in absolute phrases. Even after latest declines, the price of amassing enough hashpower to assault the community stays immense.
Nonetheless, the priority is about route and composition slightly than instant collapse. A sustained decline in hashrate lowers the marginal price of attacking.
With much less sincere hash on-line, it takes fewer assets to amass a disruptive share of the community’s compute, whether or not by means of renting capability or constructing it outright.
This pattern additionally narrows the bottom of stakeholders paid to defend the chain. If older, higher-cost operators exit and solely a handful of ultra-efficient miners stay worthwhile, management over block manufacturing turns into more and more centralized.
This creates a fragility that’s masked by the headline hashrate numbers.
So, CryptoQuant’s “extraordinarily underpaid” label is successfully a warning that, at in the present day’s block rewards and charges, a significant slice of commercial hash is working on skinny or destructive margins.
It serves as a ahead indicator of how sturdy the community’s safety funds actually is relative to competing makes use of of capital and electrical energy.
How will Bitcoin miners survive?
From right here, the miner squeeze might affect Bitcoin’s evolution in a number of distinct methods.
One path is quiet consolidation. Issue resets, essentially the most environment friendly operators seize a bigger share of block manufacturing, and hashrate grows extra slowly than in earlier cycles however stays giant sufficient that few outdoors specialists discover.
For traders, the first impact is volatility, as every market drawdown compresses a narrower group of miners, thereby rising their promoting and hedging conduct.
One other path would speed up Bitcoin’s transition to fee-driven safety quicker than the halving schedule alone implies. If subsidies stay gentle relative to AI returns, the ecosystem might need to rely extra on transaction charges to maintain miners totally engaged.
That might imply better concentrate on high-value settlement on the base layer, extra exercise on second-layer programs, and a wider acceptance that block house is a scarce useful resource slightly than an affordable commodity.
A 3rd, extra speculative path would see exterior backstops develop into express. This might imply that the identical establishments that normalized spot Bitcoin ETFs would possibly finally view the safety funds as they view financial institution capital ratios, as one thing that may require deliberate help.
That might take the type of increased charges for sure transaction courses, industry-funded incentives for miners, or scrutiny of AI conversions that materially dent hashrate in key areas.
Notably, none of these outcomes would require a break with Bitcoin’s core design. All contain the {industry} deciding, in a extra crowded power market, how a lot it’s ready to pay to maintain hash on the community slightly than in GPU clusters.
At current, the f2pool dashboard offers a snapshot of that negotiation. A system with about 890 exahashes per second of compute and a value of roughly $76,000 is paying roughly 3.5 cents per terahash per day for its safety.
Whether or not future power investments settle for that charge or demand one thing nearer to AI economics will decide how the mining market in the end pivots.
