Bitcoin mining has faced a significant setback due to severe winter storms in the United States, resulting in a sharp decline in network hashrate, output, and revenues. The total network hashrate has dropped by approximately 12% since November 11, the most significant decrease since October 2021, following China’s mining ban. Currently, the hashrate stands at around 970 exahashes per second, the lowest level since September 2025.
The recent US winter storms forced miners offline, exacerbating the hashrate slump. Publicly listed miners had to shut down machines temporarily to protect infrastructure and comply with grid curtailment requests, leading to a slowdown in production. As a result, daily Bitcoin mining revenue plummeted from $45 million to a yearly low of $28 million within a couple of days. While revenue has slightly recovered to $34 million, it remains below recent averages due to reduced network activity and lower prices.
Output from the largest publicly traded miners also experienced a significant decline, dropping from 77 Bitcoin per day to 28 Bitcoin. Similarly, production from other miners decreased from 403 bitcoin to 209 bitcoin, contributing to the overall decline in network output. Publicly listed miners recorded a 48-Bitcoin drop in production on a 30-day rolling basis, the sharpest decline since May 2024. Privately held miners saw a decrease of 215 Bitcoin in production, highlighting the widespread impact of the disruption.
The profitability of Bitcoin miners has been negatively impacted by the falling output, with CryptoQuant’s Miner Profit and Loss Sustainability Index reaching its lowest level since November 2024. The index reflects significant stress in the sector, as revenues struggle to cover operating costs for many operators. Despite multiple downward difficulty adjustments, profitability remains a challenge due to declining prices and operational disruptions caused by extreme weather.
If the hashrate continues to remain low, further difficulty cuts may be necessary in the coming weeks to provide some relief to operators. Additionally, recent research suggests that Bitcoin mining can actually benefit electrical grids and lower consumer electricity costs, contrary to common claims that it destabilizes grids or increases energy prices. The industry’s flexible power usage can offer tangible benefits to the system, according to the study.
In conclusion, the recent decline in Bitcoin hashrate following the US winter storms highlights the vulnerability of the mining sector to external factors. Despite the challenges faced, there is potential for recovery and optimization in the industry with the implementation of appropriate measures and adaptations.
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