For the first time in history, publicly traded Bitcoin miners collectively fell below the break-even point in the second quarter of 2026, according to a report from CoinShares.

The average cost to mine one Bitcoin reached approximately $75,500, while the quarter ended with Bitcoin priced at $58,400, creating a gap of nearly $17,000 or 29%.

Cost of mining 1 BTC per company in the second quarter. Source: CoinShares.

Additionally, at least 35 EH/s of computational power is set to be decommissioned from public miners, which accounts for about 4.7% of the current network hash rate of 750 EH/s.

Hash Price Hits Historic Low, Revenues Decline

The hash price, a key profitability metric for miners, reached a historic low of $27.7 per PH/s per day in June 2026. This metric peaked at around $63 per PH/s in July 2025.

In addition to the declining hash price, the miners faced pressure from a low commission share of nearly 1% in their revenues and the continuing high difficulty of mining Bitcoin. By September, cryptocurrency prices rebounded to approximately $77,000, allowing many operators to return to positive profitability, as noted by CoinShares.

Source: Hashrate Index.

The network hash rate decreased by about 27% from its peak of over 1 ZH/s in October 2025, while Bitcoin's mining difficulty remained relatively high. The industry's economics struggled under this dual pressure, as the price of Bitcoin at the end of the second quarter was less than half its all-time high of $126,080.

“While these movements may seem alarming, the deviation from the trend model firmly places them within the bounds of historical experience,” analysts stated.

According to CoinShares' piecewise-exponential methodology, the hash rate generally follows historical cycles associated with halvings. The current drop in value within this model does not exceed the historically maximum six-month decline of about 50% in 2021, which was prompted by the mining ban in China. Experts believe that the recent catalyst for the decline is not regulatory measures but rather electricity prices in Texas.

Source: CoinShares.

Miners Pay to Stop Mining

CoinShares noted that the trend of miners diversifying into AI is not only continuing but is gaining momentum. A notable incident during the quarter was Core Scientific's decision to pay Block $41.9 million to terminate a contract for 15 EH/s mining equipment. The company also confirmed it would cease its own mining operations, fully redirecting its infrastructure toward colocation for AI clients.

Similar paths have been taken by:

  • Keel (formerly Bitfarms) — halted mining in the U.S. on June 29;
  • IREN — plans to exit by the end of 2026;
  • Cipher Digital — will leave the sector by the end of 2027.

Shift to AI Economically Inevitable

The profitability gap between the two sectors explains this tectonic shift. CoinShares estimates that AI infrastructure provides these companies with around $1.5 million in profit per MW, whereas Bitcoin mining yields only about $500,000. This threefold difference in margins makes the choice clear.

Moreover, miners are not returning to cryptocurrency mining even with price recoveries, as they have already signed long-term contracts with AI clients lasting up to 15 years.

Light at the End of the Tunnel?

Since the closure of the second quarter, conditions have improved somewhat. The recovery in prices has enabled most companies to return to breakeven in their mining operations.

Analysts estimate that Bitcoin prices will remain the primary factor influencing mining economics, as hash rates are shifting "from hand to hand." The U.S., China, and Russia control approximately 68% of the network's power, with the U.S. increasing its lead. Emerging markets, including Paraguay (with the HIVE project at 300 MW), Ethiopia (Bitdeer at 40 MW), and Oman, have also entered the top ten countries.

However, the structural shift is now irreversible: those public miners that have transitioned their energy capacities and infrastructure to support AI workloads will remain in this business. CoinShares anticipates that future investments in cryptocurrency mining will come only from "flexible" players like Riot, MARA, HIVE, and Bitdeer, who have maintained openness to both sectors.

As a reminder, in March, Hut 8 unveiled a modular infrastructure model that allows flexible switching of computing power between AI tasks and Bitcoin mining.