Core Insights - Bitcoin miners are experiencing their most challenging profitability environment in two years due to a significant drop in bitcoin prices, leading production costs to exceed earnings from mining [1][4]. Group 1: Profitability and Costs - The weighted average cash cost to produce a single bitcoin among publicly listed miners reached approximately $79,995 in Q4 2025, which is close to or above recent bitcoin prices [2]. - Hash prices have fallen to an all-time low of $28–$30 per petahash per second per day in early 2026, significantly impacting miners' revenue [4]. - The average cash cost for miners is around $80,000 per bitcoin, making those with lower costs more likely to remain cash-flow positive or minimize losses [7]. Group 2: Industry Dynamics - The bitcoin network experienced three consecutive negative difficulty adjustments in late 2025, indicating that miners are shutting down operations due to unprofitability, which the report describes as industry capitulation [5]. - The efficiency gap among miners has widened, with low-cost miners like IREN maintaining an edge; IREN's electricity cost was reported at $34,325 per bitcoin, with a cash cost of $58,462 [6][8]. - The report suggests that miners with strong balance sheets may acquire distressed assets as higher-cost operators exit the market due to the current economic conditions [9]. Group 3: Fund Performance - The CoinShares Bitcoin Mining ETF (WGMI) holds a concentrated portfolio of mining companies, with its largest positions being Cipher Digital Inc. (16.7%) and IREN Limited (15.5%), which are positioned to weather the downturn [3]. - WGMI has $194.4 million in assets and has grown by 138.3% over the past year, indicating strong performance despite the challenging environment [9].

bitcoin difficulty dropped 11.16%. largest since china ban in 2021. hash price at $0.03/TH matches december 2022 bottom. miner wallets dumped 30k btc in 60 days but the math changes post-adjustment. track miner outflows on cryptoquant. when daily flows drop below 200 btc the forced selling is done. should see it in next 7-10 days if pattern holds. ...

According to Bloomberg, Bitcoin’s key mining profitability metric, hash price, has fallen to a record low of about $0.03 per terahash, based on data from Luxor Technology, while the next biweekly difficulty adjustment is expected to decline by more than 13%. Although some miners are shifting data centers toward AI workloads to diversify revenue, most income still comes from mining, with rising power costs and weather-related outages further squeezing industry margins. https://t.co/H0TQPdTnkn ...