Bitcoin Mining: profitability drops to 14-month low

NotSatoshi · 2026-02-12T07:18:27+00:00

Bitcoin mining profitability is in a critical phase due to a price drop, with current BTC at $67.04K and a profitability index at 21, forcing miners into unprofitable conditions. Network capacity and external shocks, like severe winter storms, further strain operations.

NotSatoshi

2026-02-12 07:18:27

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The profitability of Bitcoin mining is in a critical phase. With the current BTC price at $67,040 and a profitability index that has fallen to 21, miners are no longer experiencing their most profitable conditions since November 2024. This sharp decline is based on multiple interconnected factors putting pressure on the overall profitability of mining.

Price Decline and Its Immediate Impact on Miners

The Bitcoin price drop over the past week has significantly affected miners’ profitability. According to data from CryptoQuant, a leading provider of on-chain analytics, the current level marks the lowest since over 14 months ago. The combined effect of falling prices and steady mining difficulty results in minimal earnings for miners worldwide. Recent price movements indicate that Bitcoin mining is becoming an increasingly unprofitable activity for many operators.

Network Capacity and Hash Rate Under Pressure

Despite multiple declines in the Bitcoin network’s hash rate over five cycles, the situation remains challenging for miners. The network hash rate is at its lowest point since early 2024, showing that other miners have already exited the market. This adjustment of network parameters does not automatically lead to improved profitability prospects, as mining difficulty does not decrease quickly enough to offset the price declines.

External Shocks Worsen the Situation for Operators

Beyond market dynamics, numerous mining operations in the eastern United States have been affected by a severe winter storm. This natural event caused ice and snow damage, leading to operational disruptions and additional costs. For miners already struggling with low profitability, this represents an additional existential threat to their business models.

The combination of low Bitcoin prices, stagnant mining profitability, and unforeseen natural disasters creates a difficult environment for the mining industry. Without a significant recovery in BTC prices or an adjustment of mining parameters, short-term profitability appears unlikely to improve.

BTC-2,28%

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