The recent sharp pullback in the cryptocurrency market has put renewed pressure on the Bitcoin mining sector.
According to a new analysis note published by Rosenblatt, with the decline in Bitcoin price, mining operations have ceased to be profitable for many companies.
Bitcoin, trading at $64,143 in recent transactions, has lost approximately 26 percent of its value since the beginning of the year. The leading cryptocurrency briefly dropped below $63,000 on Tuesday, approaching its lowest levels in two weeks. This price decline has also led to a significant deterioration in key indicators that directly affect miners’ income.
Rosenblatt analyst Chris Brendler stated that revenue from mining has fallen below 3 cents, adding that these levels are “unprofitable for all miners except the most efficient operations.” Hash price, a key indicator in Bitcoin mining, measures miners’ daily earnings per terahash. However, in parallel with the decline in Bitcoin price, this metric has also fallen by approximately 30 percent in the last three months.
According to Hashrate Index data, the hash price on the Bitcoin network is currently 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.”
The weakness in the sector was also reflected in the performance of publicly traded mining companies. Since the beginning of 2026, Bitmine Immersion Technologies shares have fallen by 29 percent, while MARA Holdings has dropped by 13 percent. CleanSpark, on the other hand, has performed flat during the same period.
However, some mining companies have begun to shift to different business models to offset their losses. The transition to high-performance computing (HPC) services, in particular, is gaining momentum. Companies like Cipher Mining and TeraWulf are moving away from purely Bitcoin-focused activities and concentrating on building high-speed systems for data processing and complex computations.
Brendler stated 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.” According to the analyst, Rosenblatt’s market capitalization-weighted Bitcoin mining index has only declined by 2 percent since the beginning of the year. This limited decline is attributed to miners’ efforts to offset losses from digital asset mining by shifting to HPC.
*This is not investment advice.
