Bitcoin's global hashrate contracted by 5.8% in the second quarter of 2026, falling from 1,066 exahashes per second (EH/s) to 1,004 EH/s, according to a report from Hashrate Index. This marks the sharpest quarterly drop in several periods, driven primarily by the economic cycle rather than geopolitical tensions. Bitcoin's price fell approximately 50% from its peak of $124,000 in October 2025 to around $65,000 in February 2026, pushing the hashprice—mining revenue per unit of hashrate—to an all-time low of $27.89 per PH/s/day.
At these revenue levels, older-generation mining equipment with efficiencies above 25 joules per terahash (J/TH) operates at negative gross margins. The report estimates that approximately 252 EH/s of marginal capacity remains offline, with much of the obsolete hardware permanently retired. The geographic concentration of mining power remains high, with the United States, Russia, and China collectively controlling 65.2% of the global network.
The United States retains the top position with 37.4% of the global hashrate (about 375 EH/s), though it experienced a slight quarterly decline attributed to equipment retirement and some operators shifting resources toward artificial intelligence infrastructure. Russia holds 16.9% despite sanctions pressure, while China maintains a 12% share, reflecting the impact of compliance actions in Xinjiang in late 2025 that took roughly 13% of its capacity offline.
Emerging markets showed significant growth, capitalizing on regulatory clarity and cheap energy. Kyrgyzstan posted 300% year-over-year growth after its parliament approved transparent mining regulations in mid-2025. Paraguay grew 54% year-over-year and now controls 4.3% of the global hashrate, largely powered by the Itaipú Dam with electricity prices around $0.033 per kWh. Laos and Finland each saw 100% year-over-year growth, benefiting from hydroelectric power and favorable climate, respectively.
Ethiopia climbed to eighth place globally with 2.5% of the hashrate, a notable achievement given a government freeze on new mining permits in mid-2025. In contrast, Argentina's hashrate fell 42% year-over-year due to macroeconomic instability, and Iran lost roughly 7 EH/s during the quarter due to regional geopolitical conflict. Brazil showed signs of structural investment with 133% year-over-year growth to 3.5 EH/s.
The report also highlights a structural industry shift. Machines older than the Antminer S19 XP series are becoming unprofitable where electricity costs exceed $0.06/kWh, accelerating their retirement. Furthermore, the industry faces geopolitical and policy developments. In the US, proposed tariffs and the Mined in America Act—introduced by Senators Cynthia Lummis and Bill Cassidy—aim to reshore Bitcoin mining hardware manufacturing and establish a Strategic Bitcoin Reserve, framing the dependency on foreign-made ASICs as a national security issue.
