Bitcoin miners enter ‘harshest margin environment of all time’

The Bitcoin mining industry has entered what may be its most severe economic downturn in its 15-year history, with even large publicly traded operators struggling to break even amid collapsing mining revenue and rising debt, according to TheMinerMag.

In its latest report, TheMinerMag said miners are operating in the “harshest margin environment of all time,” as hashprice — the revenue earned per unit of computing power — has fallen from an average of about $55 per petahash per second (PH/s) in the third quarter to roughly $35 PH/s, a level the publication characterized as a structural low rather than a temporary dip.

The deterioration followed a sharp correction in the price of Bitcoin (BTC), which fell from a record high near $126,000 in October to below $80,000 in November.

Under these conditions, cost-per-hash has emerged as a revealing metric for miners. It highlights how efficiently miners convert electricity and capital into raw computational output and exposes a widening gap between average operators and only the most efficient survivors.

The data shows that new-generation mining machines now require more than 1,000 days to recoup their costs — a growing concern, given the next Bitcoin halving is roughly 850 days away.

Bitcoin mining costs across major publicly traded miners. Source: TheMinerMag

“Balance sheets are reacting” to the deteriorating economics, TheMinerMag said, pointing to CleanSpark’s recent decision to fully repay its Bitcoin-backed credit line with Coinbase as a sign of the industry’s broader shift toward deleveraging and liquidity preservation.

Related: Thirteen years after the first halving, Bitcoin mining looks very different in 2025

Bitcoin mining stocks take a beating

The slide in Bitcoin prices and the resulting pressure on hashrate have coincided with a broader sell-off across traditional markets, delivering a one-two punch to publicly listed mining companies.

The MinerMag’s third-quarter report flagged a “sharp drawdown in mining equities since mid-October,” with losses accelerating across the sector.

MARA stock’s year-to-date performance. Source: Yahoo Finance

MARA Holdings (MARA) has been among the hardest hit, down roughly 50% from its Oct. 15 closing high. CleanSpark (CLSK) has declined 37% over the same period, while Riot Platforms (RIOT) has dropped 32%. Shares of HIVE Digital Technologies (HIVE) have suffered the steepest decline, plunging 54% from their October peak.

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