Bitcoin's hashrate fell by 5.8% in Q1 2026, largely due to legacy equipment shutdowns amid declining profitability.
Bitcoin's hashrate saw a significant decrease of 5.8% in the first quarter of 2026, dropping from 1,066 EH/s to 1,004 EH/s. This decline, as analyzed by Hashrate Index, is primarily due to the retirement of older, unprofitable mining equipment.
Global hashrate decreased to 1,004 EH/s in Q2 2026, reflecting profitability challenges. Bitcoin's value halved from its peak of $124,000, leading to hashprice plummeting to around $27.89 per PH/s/day, which prompted 252 EH/s of legacy hardware to cease operations.
— Hashrate Index 🟧⛏️ (@hashrateindex) April 6, 2026
Experts noted that shifts in mining power distribution stem from profitability concerns rather than geopolitical issues.
During this period, the U.S. retained its position as the dominant mining nation, holding a 37.4% share despite a slight hashrate decrease of 0.13%, attributed to unprofitable operations and a shift towards AI technologies. Russia's share increased from 16.4% to 16.9%, further solidifying its second place, while China's share grew from 11.7% to 12%, despite a 1.35% drop in absolute hashrate due to governmental crackdowns on miners in Xinjiang.
These three countries collectively account for nearly 65% of global Bitcoin mining power.
Analysts remarked that although this reflects ongoing concentration of power, the rise of countries like Ethiopia and others in the Middle East and Southeast Asia indicates a trend towards diversification in mining locations.
Year-over-year, several regions displayed remarkable growth in hashrate: Kyrgyzstan saw a 300% increase, followed by Laos and Finland at 100%, and Paraguay at 54%. Their success is linked to modern mining technologies and advantageous energy conditions.
Conversely, Iran experienced a reduction in hashrate from 9 EH/s to approximately 7 EH/s, though neighboring UAE and Oman remained unaffected by regional conflicts. Current trends suggest a shift toward a more varied mining landscape, with miners favoring locations that offer:
- affordable and plentiful energy;
- favorable regulatory environments;
- robust infrastructure and capital access.
Additionally, Bitcoin's mining difficulty increased by nearly 4% at the start of April, following an earlier drop of about 8% in the previous adjustment.
