Bitcoin miners are earning $45 (PH/s) based on data from the Hashprice Index. This is the lowest level the index has seen in the past five years.
Bitcoin is trading near $86,897, but after last April’s halving, the income for BTC miners has fallen sharply. The hashprice, which stands for revenue per petahash, is stuck at around $45 PH/s, the lowest level in the past five years.
Bitcoin miners are barely breaking even
According to the HashRate Index, many miners are operating at a loss, depending on the efficiency of their hardware. This is a big difference from the profitability seen during the 2021 bull, which was standing at $405 per PH/s.
BTC has gained over 70% since August 2024, when it was around $49,000, but the hashprice remains weak. Rising mining difficulty (123.23T), reduced block rewards (3.17 BTC), lower transaction fees, and high energy costs are reducing profit margins.
The impact of lower BTC mining profitability is visible in mining stocks like the Valkyrie Bitcoin Miners ETF (WGMI). The mining stock WGMI is down by 50% year-to-date, compared to Bitcoin’s 10% decline over the same period.
The persistent flat BTC prices, and possible tariffs on mining equipment, could create more pressure on BTC miners. To adapt, some miners are utilizing computing resources toward AI workloads and other revenue-generating uses.
Miners are selling more BTC
Bitcoin miners are ramping up sales to cover expenses as profitability declines. Recent data from BGeometrics shows that miners’ outflow in the last 24 hours is standing at 12,945 BTC (around $1.124 billion). The outflows record indicates that miners are transferring BTC to other addresses or selling them on exchanges.
Earlier this month, CryptoQuant reported that miners sold 15,000 BTC (worth over $1.12 billion), marking the third-largest daily outflow this year. Average miner margins have fallen from 53% in late January to 33%, CryptoQuant said. The firm also noted that Bitcoin remains in one of its least bullish phases since November 2022.
Although President Trump has signaled support for the crypto sector, including approving a national Bitcoin reserve and easing SEC enforcement, miners say costs remain unsustainable. During the Mining Disrupt conference, several miners said conditions are likely to worsen as difficulty rises. Bitcoin is currently trading at $86,897, with a 24-hour trading volume of $38.4 billion. Based on CoinGecko data, Bitcoin has recovered by 2.8% in 24 hours, 2.3% in 7 days, and 10.7% in the last 14 days.
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