What happened?
Bitcoin mining profitability has plunged, with the hash price falling to around $42 per PH/s and nearing break-even for many operators. High energy costs, a recent halving that cut block rewards, and a drop in BTC’s price have squeezed margins. As a result, some miners are weighing shutdowns while others are pivoting to AI and high-performance computing to stay afloat.
Who does this affect?
Small and marginal miners are most at risk of going offline because they can’t cover power and hardware costs. Hardware makers and suppliers are seeing weaker sales and some are shifting to self-mining or different business models. Investors, energy providers, and anyone with exposure to mining stocks or crypto infrastructure also face increased risk and uncertainty.
Why does this matter?
If many miners shut down or consolidate, the network could become more centralized and mining economics will shift, impacting Bitcoin’s security and decentralization. The industry pivot to AI and cloud deals could reallocate capital and hardware demand from ASICs to GPUs, changing market winners and losers. Overall, this adds volatility to Bitcoin’s price, pressure on mining-related stocks, and changes in power demand that ripple through energy and tech markets.