Bitcoin Miners Under Pressure as Hashprice Drops Post-Election

Bitcoin miners are currently experiencing significant financial strain as a result of declining transaction fees and a notable drop in hashprice, which is the revenue miners earn per unit of computing power. According to a report from TheMinerMag in February 2025, these factors are pushing operational costs higher, creating a challenging environment for miners.

Hashrate and Mining Competition

In February, Bitcoin’s hashrate saw a 3.8% increase, reaching 810 EH/s. This uptick indicates a slowdown in the growth of mining competition, which has become increasingly fierce. However, the hashprice has taken a hit, dropping to $45/PH/s. This decline has effectively erased the gains that miners enjoyed following the price surge driven by the U.S. elections. At this current hashprice level, many inefficient miners are feeling the financial strain.

Transaction Fees at Record Lows

Transaction fees, which are a crucial component of miners’ earnings, constituted only 1.3% of total block rewards in February. This marks the lowest share of transaction fees since the last bear market bottom in 2022. The trend appears to be worsening, with March figures trending even lower at just 1.12% so far. These diminishing transaction fees, combined with the increased competition from artificial intelligence (AI) data centers, are exerting additional pressure on mining operations that rely on hosting agreements and asset-light strategies.

Industry Leaders and Hashrate Growth

Despite the challenging environment, some companies are managing to grow their hashrate. Marathon Digital Holdings (MARA) remains the industry leader with a hashrate of 44 EH/s, following a 6% increase. CleanSpark has also seen a significant increase, growing its hashrate by 12% to reach 39 EH/s. These companies are navigating the current landscape with strategic adjustments to maintain their competitive edge.

Bitcoin Holdings Among Miners

Interestingly, total Bitcoin holdings among miners have surpassed 100,000 BTC for the first time. This milestone comes despite some firms, such as HIVE Digital and Cipher Mining, opting to sell their production to fund expansion efforts. This strategy reflects the ongoing challenges miners face in balancing operational costs with the need for growth and investment.

Impact on Mining Stocks

The financial pressures on Bitcoin miners have also been reflected in the stock market. The combined market capitalization of 15 major mining firms has plummeted from $36 billion in January to just $22 billion in March. Notably, companies like Cipher, Canaan, Hut 8, HIVE, and Bitdeer have all reported losses exceeding 40%. This downturn in mining stocks underscores the broader challenges facing the industry as it grapples with fluctuating prices and operational costs.

Conclusion

In conclusion, Bitcoin miners are currently navigating a tumultuous landscape characterized by declining hashprice, low transaction fees, and increased competition. As operational costs rise, many miners are feeling the squeeze, leading to significant shifts in the market. While some companies are managing to grow their hashrate and Bitcoin holdings, the overall outlook for the industry remains uncertain. As the situation evolves, it will be crucial for miners to adapt their strategies to survive and thrive in this challenging environment.

Disclaimer: Parts of this article were generated with the assistance of AI tools and reviewed by our editorial team to ensure accuracy and adherence to journalistic standards. For more information, see CoinDesk’s AI Policy.

Tom writes about markets, Bitcoin mining, and crypto adoption in Latin America. He holds a bachelor’s degree in English literature from McGill University and can usually be found in Costa Rica. He holds BTC above CoinDesk’s disclosure threshold of $1,000.