Bitcoin Miners Panic as Hashprice Dips Below $40 – Are They Doomed?

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Oh, dear! Bitcoin miners find themselves in the tightest financial straits since 2023, with hashprice flirting dangerously close to the dreaded break-even line. Wolfie Zhao, the ever-pessimistic Head of Research at theminermag.com, paints a rather grim picture for these poor souls.

Trump’s Tariffs Throw Another Spanner in the Works for Miners Already Struggling with Rising Difficulty

According to theminermag.com, compiled by our ever-earnest Wolfie Zhao, hashprice dipped below $40 per petahash per second in early April – a far cry from the $45–$50 range enjoyed by miners just last month. Zhao points out that the $40 line is the break-even mark, even for those shiny publicly listed giants, which only serves to heighten the tension across the sector.

The latest report reveals that two consecutive 1.43% difficulty increases in March, followed by a rather distressing 6.81% spike this month, have collided with diminishing fees. These now contribute a mere 1.2% of block rewards. Zhao has crunched the numbers, and the results are grim – electricity costs combined with transaction revenue weakness mean that median fleet hashcosts for public miners are hovering near $34 per petahash. A mere pittance!

Source: Report published by theminermag.com.

Meanwhile, Bitfarms and Hut 8 have bucked the trend, boosting their realized hashrate by a dazzling 16% and 80%, respectively, Zhao reports. Oh, how the mighty have risen! As for MARA, it remains the only miner above 40 exahash. But let’s not get too carried away. According to theminermag.com, 42% of March’s production was liquidated by listed bitcoin miners – the highest ratio since October. How utterly dreadful. Even Cleanspark has jumped ship from its formerly firm “hodl” stance, resorting to asset sales.

The market sentiment is not much better, with investor anxiety reaching fever pitch. Trump’s tariff proposals are causing a panic, particularly among those poor souls involved in ASIC supply chains. Zhao’s price-to-hash ratio has slumped towards $50 per terahash (TH/s), down from post-election highs. As a result, sector capitalization has plummeted beneath the $20 billion mark. The drama, the suspense!

In conclusion, Zhao warns that if hashprice doesn’t rebound and hashrate growth continues from those efficient operators, we might soon witness a dramatic capitulation among smaller private miners – all thanks to tariff-induced equipment uncertainty. What a time to be alive!

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2025-04-22 02:27