Bitcoin Miners Hit Breaking Point One Year After Halving

Forbes

25-03-2025

President Donald Trump vowed to make America "The undisputed Bitcoin superpower and the crypto capital of the world" at the Blockworks Digital Assets Summit on March 20th, 2025.
The key profitability metric, Hashprice, which measures miners' daily earnings per petahash per second, has remained around $48/PH/s. This historically low hasprice coincides with a recent 1.4% increase in mining difficulty.
Hashprice reflects how much revenue miners generate from their computational power and is influenced by Bitcoin's price, block rewards, transaction fees, and network difficulty.
While a stable hashprice might appear reassuring, it hides a growing squeeze on miners from all sides: rising costs, decreasing rewards, and a hypercompetitive global landscape.
The April 2024 Bitcoin halving slashed block rewards from 6.25 BTC to 3.125 BTC.
While this event is designed to control Bitcoin's issuance and maintain scarcity, it also cut miner revenues in half overnight. Unlike previous halvings, this one came at a time when Bitcoin's price growth has stalled and transaction fees have dipped to historic lows, making up just 1.12% of miner rewards earlier this month.
Older mining machines like the Antminer S19 XP and S19 Pro are now barely breaking even. Many miners are operating at a loss unless they have access to ultra-cheap energy.
The global hashrate has recently dipped below 800 EH/s, down from over 840 EH/s earlier in March, as some miners unplug to cut losses.
Some miners are turning to creative solutions, such as heat reuse, to create alternative lines of revenue.
Europe based bitcoin company Braiins is pioneering 'hashrate heating,' where bitcoin mining machines are repurposed to warm homes and buildings.
Tyler Stevens, author of Bitcoin Mining Heat Reuse, sees this as a powerful answer to mining's economic challenges.
Stevens told Forbes, 'an interesting solution to the challenges that bitcoin miners face is a focus on reusing the heat energy that the machines exhaust.' He goes on to say, 'If they're used in applications where electric heat is the primary product, from home appliances to district heating, then the bitcoin earnings are simply a rebate on heating costs. Hashprice and other challenges are largely solved when you need the heat anyway.'
Instead of being wasted, mining heat can be transformed into a useful product.
Amid tightening margins, some countries are showcasing alternative paths.
El Salvador, the first nation to adopt bitcoin as legal tender, has mined over 474 bitcoins, worth about $29 million, using geothermal energy from the Tecapa volcano since 2021.
This volcano-powered operation is promoted as a sustainable model and contributes to the country's total bitcoin holdings, now valued at around $354 million.
Similarly, in Pakistan, crypto industry leaders are pushing for regulatory clarity and investment in bitcoin mining.
Bilal Bin Saqib, CEO of the Pakistan Crypto Council, proposed using excess national energy for bitcoin mining to stimulate economic growth.
With flat revenues, rising hashrate, and new global players entering the scene, the Bitcoin mining industry is under mounting pressure.
Hashprice may be holding steady, but beneath the surface, the landscape is shifting. For miners to survive, and thrive, they'll need to innovate, adapt, and explore every watt of opportunity.