CoinShares Analysts Report 20% of Bitcoin Miners Capitulate

Bitcoin mining has become increasingly challenging, as highlighted by a recent report from CoinShares, revealing that a significant portion of miners are struggling to maintain profitable operations. The fourth quarter of 2025 marked a particularly difficult period, with average mining costs for publicly traded firms reaching $79,995 per Bitcoin.

At the same time, the hash price fell to between $36 and $38 per petahash per second daily, following three successive negative adjustments in mining difficulty—unprecedented since July 2022. This shift is indicative of miner capitulation, with the hash price dropping further to $29 in the first quarter of 2026, before recovering slightly to $33.6, remaining at a five-year low.

On March 20, Bitcoin mining difficulty saw a notable decrease of 7.7%, reflecting the mounting pressures on miners. Approximately 15-20% of miners are currently operating at a loss, particularly those with outdated hardware and high energy costs. Miners using mid-generation equipment are especially vulnerable if they are paying around $0.05 per kilowatt-hour, as they need lower rates to break even.

CoinShares analysts warn that a stagnation in Bitcoin prices could further worsen the situation, as unprofitable operations may be forced to shut down, leading to a slowdown in hash rate growth and ultimately affecting profitability. James Butterfill, the head of research at CoinShares, noted that if Bitcoin's price does not exceed $80,000 by year-end, the hash price may continue its downward trend as weaker competitors exit the market.

Experts argue that the current challenges signify not merely a cyclical downturn but a fundamental reduction in the number of viable mining operators. Only those capable of leveraging efficient equipment and cheaper electricity are expected to thrive in this environment. As of now, Bitcoin trades around $69,300, reflecting a 3% drop in the past 24 hours.

In a related statement, analysts from Wintermute have described the traditional Bitcoin mining model as outdated, highlighting the need for adaptation in an evolving industry.