Recent policy decisions made by the US administration have created challenges for the cryptocurrency mining sector, impacting even the largest Bitcoin miners and potentially pushing them towards financial losses.
The administration’s implementation of widespread import taxes across numerous industries has created a ripple effect, and digital currency mining has not been immune. The news regarding these tariffs led to a considerable downturn in the broader market, subsequently causing a reduction in Bitcoin’s hashprice.
Bitcoin’s hashprice serves as an indicator of mining profitability. According to the most recent “Miner Weekly” report issued by BlocksBridge Consulting, this metric has decreased to below $40 per PH/s, a level previously observed in September 2024.
Following the initial tariff announcements, the administration subsequently declared a temporary, 90-day suspension of these global tariffs. The market experienced a partial rebound, but Bitcoin’s hashprice remained only slightly above $42 per PH/s. Source: Miner Weekly
Analysis of Q4 financial results by TheMinerMag reveals that the $40/PH/s threshold is a crucial point for many publicly traded mining businesses in terms of maintaining gross profit margins. This evaluation is based on the fleet hashcost, which represents the direct expenses associated with running mining operations, excluding corporate overhead and financial commitments, according to the report.
With the hashprice hovering near breakeven levels, any additional expenses beyond the fleet hashcost, such as corporate overhead and interest payments, are “driving almost all of these companies into net-negative territory concerning their proprietary mining operations.” Source: Miner Weekly
Interestingly, figures linked to the administration have ties to the digital currency mining industry. Just a few weeks ago, Hut 8 Corp., an energy infrastructure platform, unveiled the launch of American Bitcoin Corp., a large-scale Bitcoin mining operation, in collaboration with Eric and Donald Trump Jr.
The report further suggests that the “economics are notably unfavorable” for operators still utilizing S19 Pro-class equipment. These machines, however, represent half of the network’s overall hashrate, as indicated by Coin Metrics.
These miners were already experiencing “marginal profitability” following the Bitcoin halving event in April 2024. It’s now probable that they will “face accelerated shutdowns or relocations in the coming weeks.” A “significant recovery” in hashprice would be necessary to prevent this.
Recent governmental decisions impact U.S. Bitcoin miners, contrary to popular expectations. Learn more from BlocksBridge Consulting’s latest analysis. Read + subscribe FREE 👇 — BlocksBridge Consulting (@BlocksBridge_)
Furthermore, as noted above, the hashprice last touched $40/PH/s in mid-September 2024. At that point, Bitcoin’s price was around $64,000. Currently, Bitcoin is trading near $80,000, but “miners are in a worse situation.”
The report identifies two primary reasons for this situation. First, Bitcoin’s 7-day average hashrate has seen a substantial increase, and this “continuous rise” is reducing mining revenues.
Second, while the hashrate is increasing, transaction fees are decreasing. Analysts have discovered that monthly block transaction fees have reached record lows this year.
Regarding the Bitcoin price, it has been fluctuating around the $80,000 mark for several days.
As of the time of writing, Bitcoin is valued at $82,586. It experienced a 2% increase in the past 24 hours, while it decreased by less than 1% over the week and less than 2% in the past month.
Overall, the price of Bitcoin has increased by 18% in the past year. Bitcoin reached its all-time high of $108,786 in January 2025, and it has since decreased by 24%.