The Bitcoin mining industry is facing a severe profitability crisis as the cryptocurrency's price decline has pushed key mining metrics to unsustainable levels. According to a new analysis from Rosenblatt, Bitcoin's recent pullback has made mining operations unprofitable for all but the most efficient companies.
Bitcoin is currently trading around $64,143, representing a 26% decline since the beginning of the year. The cryptocurrency briefly dropped below $63,000 on Tuesday, approaching its lowest levels in two weeks. This price deterioration has directly impacted miners' revenue, which has fallen below 3 cents per unit, according to Rosenblatt analyst Chris Brendler, who stated these levels are "unprofitable for all miners except the most efficient operations."
The hash price, a crucial metric measuring miners' daily earnings per terahash, has declined by approximately 30% over the last three months. Current data from Hashrate Index shows the Bitcoin network's hash price is around $28 per terahash per second per day. Brendler commented, "The Bitcoin mining economics have gone from bad to worse. The record low hash prices that weighed on our earnings forecasts in December seem almost attractive compared to today."
Publicly traded mining companies have reflected this sector weakness, with Bitmine Immersion Technologies shares falling 29% and MARA Holdings dropping 13% since the beginning of 2026. CleanSpark has performed flat during the same period.
In response to these challenges, some mining companies are shifting business models to offset losses. The transition to high-performance computing (HPC) services is gaining momentum, with companies like Cipher Mining and TeraWulf moving away from purely Bitcoin-focused activities to concentrate on building high-speed systems for data processing and complex computations. Brendler noted that the HPC economy is improving with increased demand from large technology companies, adding, "We believe that all miners who can should actively switch from Bitcoin to HPC."
Despite the mining profitability crisis, Bitcoin's network fundamentals show resilience. Mining difficulty has recently rebounded following a brief weather-driven dip, signaling renewed miner participation and sustained network strength. The latest adjustment pushed difficulty back to new highs after severe winter storms temporarily disrupted energy supply in key mining regions, forcing portions of the network's hashrate offline temporarily.
This difficulty rebound indicates capital remains committed to the network despite price weakness below $70,000 and suggests the broader mining ecosystem retains operational resilience. However, greater difficulty increases production costs, particularly for less efficient operators, potentially intensifying margin pressure if Bitcoin's price remains compressed near the $63,000–$65,000 range.
Technically, Bitcoin is trading below the 50-week and 100-week moving averages, with the $60,000–$63,000 region acting as immediate support. A sustained break below this level could expose deeper retracement zones toward the mid-$50,000 area, while reclaiming the $70,000 threshold would be necessary to restore bullish momentum.
