Bitcoin mining firms liquidated 32,000+ BTC in Q1 2026—the biggest sell-off ever recorded. Mining profitability collapsed after the April 2024 halving cut block rewards and broke the math for most operators.
Miners are earning $29 per petahash per second per day. That's what they made in 2020 when Bitcoin had crashed 65%. Today it's higher in price, but mining margins are worse because network hash rate grew too efficient.
Modern ASICs like the S23 Hydro run at 9.5 J/TH, meaning power cost is everything. Miners paying over $0.08/kWh are losing money. Only large-scale operators with access to ultra-cheap power survive.
Bitcoin's 2-week difficulty adjustment mechanism is working as intended. Fewer miners means less competition for each block, gradually improving hashprice for whoever stays. The network is consolidating toward profitability equilibrium.
Bitcoin's security model assumes rational miners. If hash rate stabilizes once inefficient operators exit, no risk. If it continues falling sharply, that signals deeper structural demand destruction—worth monitoring closely.
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