Bitcoin miners are navigating a challenging environment as BTC trades near $76,000, a level that places significant pressure on their profitability. According to mining data, several widely used mining rigs, including popular Antminer models, are now operating near their shutdown or break-even points, especially as electricity costs rise. This squeeze on margins is influencing miner behavior, with data showing around 175,000 BTC was transferred to Binance in January, a substantial increase compared to calmer periods. These transfers, which spiked on some days to nearly 10,000 BTC, add potential sell-side supply to the market.
Operationally, January provided some relief due to external factors. Winter storms across the U.S. forced widespread curtailments, dragging the average Bitcoin network hashrate down 6% month-over-month to 981 exahashes per second (EH/s), as reported by JPMorgan. This drop in network competition helped offset weaker bitcoin prices. The bank's analysts estimated miners earned about $42,350 per EH/s in daily block reward revenue in January, slightly up from December, with gross profit jumping 24% to roughly $21,200 per EH/s due to improved network efficiency.
Despite the operational relief, profitability remains well below pre-halving levels. In response to these pressures, miners are actively diversifying. JPMorgan highlighted that the 14 U.S.-listed bitcoin miners and data center operators it tracks ended January with a combined market capitalization of $60 billion, up 23% month-over-month, far outpacing the S&P 500. This rally was bolstered by news like Riot Platforms signing a high-performance computing (HPC) agreement with AMD, underscoring a strategic shift for miners to reposition as digital infrastructure providers and repurpose sites into AI-ready data centers.
Concurrently, a new tool has emerged to aid miners. Tether has launched MiningOS, an open-source system built specifically for Bitcoin miners. Designed to make mining easier to manage and less dependent on closed, expensive software, MiningOS aims to help operations of all sizes adjust their strategies based on costs and scale, potentially helping them remain active longer despite profitability challenges.
