Bitcoin mining has experienced a substantial downturn, marking the most significant decline since late 2021, as a severe winter storm in the United States compelled major mining firms to reduce their operations. This disruption has led to a sharp decrease in the network hashrate, production levels, and overall revenue generation in the Bitcoin ecosystem.
Data from CryptoQuant reveals that Bitcoin’s total network hashrate has plummeted by approximately 12% since November 11, the steepest drop recorded since October 2021, which was a period of recovery following China’s extensive mining ban. The current hashrate stands at around 970 exahashes per second, the lowest figure since September 2025.
The adverse weather conditions have particularly impacted power supply in crucial US mining hubs, prompting several publicly traded mining companies to temporarily halt operations. These shutdowns were instituted not only to safeguard infrastructure but also to adhere to grid curtailment guidelines. This operational disruption added to an already declining trend that began when Bitcoin retreated from its all-time high of $126,000 towards the $100,000 threshold late last year.
As a consequence of the hashrate decline, miner profitability has taken a hit. Daily Bitcoin mining revenue experienced a significant tumble, dropping from approximately $45 million on January 22 to a year-low of $28 million just two days later. Although there has been a slight recovery with revenue currently hovering around $34 million, this figure remains considerably below recent averages. This downturn in income is attributed to diminished network activity coupled with weaker Bitcoin prices.
Production rates have also seen a severe contraction. Output from the largest publicly traded miners dropped dramatically from 77 Bitcoin per day to merely 28 within the same timeframe. Meanwhile, other miners recorded a decrease in production from 403 Bitcoin to 209. Overall, total network output has declined sharply, with publicly listed miners experiencing a 48 Bitcoin shortfall over the last 30 days—the steepest drop since May 2024, shortly after the last halving event. Non-public miners reported a drop of 215 Bitcoin, marking the largest decline since July 2024.
The deteriorating profitability of Bitcoin mining has intensified pressures on this energy-intensive sector. The CryptoQuant Miner Profit and Loss Sustainability Index has slipped to 21, its lowest level since November 2024. This reading indicates that a growing proportion of miners are operating under significant financial stress, with revenues failing to cover costs, despite multiple downward adjustments in mining difficulty over recent epochs.
Although mining difficulty has lessened as a result of machines going offline, the adjustments have not sufficiently compensated for falling Bitcoin prices and operational disruptions. If the hashrate remains low, the network may face additional difficulty reductions in the coming weeks, potentially providing some needed relief. Current indicators suggest that Bitcoin miners are grappling with one of the most challenging periods since the reset that followed the Chinese mining ban over four years ago.
