The Bitcoin network has experienced a continuous decline in its hash rate for 287 days, marking one of the longest downturns in its history. This information comes from a report by Bitcoin Magazine Pro.

As the hash rate has fallen, mining difficulty has also decreased, now sitting 19.9% below its peak. Since the introduction of specialized mining hardware, this metric has only seen larger drops twice, both lasting about the same duration. The most significant decline occurred after China banned mining, a situation experts described as "perfectly understandable" due to the shutdown of equipment. However, the current downturn lacks such clarity, they noted.

Mining difficulty trends for Bitcoin. Source: X/Bitcoin Magazine Pro.

Mining Stocks Rise Despite Bitcoin's Decline

Over the past year, Bitcoin has lost approximately 46% of its value. In contrast, shares of publicly traded mining companies have generally risen:

  • Hut 8 — up 431%;
  • Riot Platforms — up 62%;
  • HIVE Digital — up 37%.

However, MARA Holdings stands out as an exception, with its stock price dropping by 29%.

This trend is atypical for these two asset classes, experts pointed out. Historically, mining stocks have traded with a leverage effect on Bitcoin—experiencing sharper declines during corrections and outperforming during uptrends.

Trends in mining stocks and Bitcoin's price over the year. Source: X/Bitcoin Magazine Pro.

According to Bitcoin Magazine Pro, the disconnect arises from the industry's shift towards artificial intelligence. Investors are beginning to view miners not merely as Bitcoin bets but as providers of computational infrastructure. For years, the original cryptocurrency moved in tandem with AI sector stocks, with correlation levels reaching 0.8-0.9 at times. However, this trend has reversed, with tech stocks strengthening while Bitcoin has entered a sell-off phase.

Mining stocks are appreciating even as miners sold thousands of Bitcoins during this period. In the first quarter alone, they liquidated over 32,000 BTC to cover operational costs—more than they sold throughout 2025.

Fees Only Cover Ten Minutes of Network Operations

Miners' revenue is derived from two sources: block rewards and transaction fees. The issuance of new coins halves every four years and is expected to eventually reach zero. After that, the network's operation will rely solely on transaction fees. If these fees fall short, the total income for miners will decrease, along with the costs required to attack the blockchain, as noted by Bitcoin Magazine Pro.

Daily earnings from block rewards have already hit a historic low. This is partly due to the exodus of mining capacity: before difficulty readjustment, the interval between blocks exceeds ten minutes. However, experts believe the main factor is the normal functioning of the protocol.

Since the first halving, the industry has consistently argued that while the number of coins per block decreases, their value increases, keeping dollar revenue stable. Until now, this mechanism has held true, analysts acknowledged.

However, Bitcoin's price is currently falling alongside the reduction in issuance. This is evident from the Puell Multiple indicator, which compares current miner revenues to the average from the previous year. The indicator has dropped to about 0.75, translating to roughly $30 million per day compared to an average closer to $40 million.

The second source of income remains minimal. Of the $30 million in daily revenue, only about $200,000 comes from fees. The reward for a single block exceeds the total daily fee collection: over the past 28 days, the average daily volume of fees has not even covered one such payout. With 144 blocks mined daily, fees support network operations for only about ten minutes out of 24 hours.

Proportion of fees and block rewards in miners' income. Source: X/Bitcoin Magazine Pro.

In prior cycles, the fee proportion occasionally reached several tens of percent, with notable spikes in 2017, 2021, and 2023-2024. Currently, this metric is near zero, and such spikes have ceased, analysts concluded.

It’s worth noting that on July 11, the mining difficulty of the first cryptocurrency decreased by 5% to 127.17 T. In mid-June, the figure had dropped by 10.09%, but then recovered by 7.15%.