Bitcoin Mining Faces Worst Crisis Since China Ban as Hashrate Plunges 12%

A brutal winter storm has delivered the biggest blow to bitcoin mining since China's 2021 crackdown, with network hashrate plummeting 12% and daily revenues crashing to yearly lows as major US operations went dark.

The Numbers Tell a Stark Story

Bitcoin's total network hashrate has tumbled to near 970 exahashes per second—its lowest level since September 2025. But the real shock lies in the revenue collapse.

Daily mining revenue plunged from roughly $45 million on January 22 to a yearly low of $28 million just 48 hours later. That's a $17 million daily revenue wipeout in less than a week. While it's since recovered modestly to around $34 million, miners are still operating 24% below recent averages.

The production data is equally brutal. Output from major publicly traded miners crashed from 77 bitcoin per day to just 28 bitcoin—a 64% collapse that represents the steepest decline since May 2024's halving event.

When Weather Becomes an Existential Threat

This wasn't just bad weather—it was a perfect storm. Extreme cold across key mining hubs in Texas, North Dakota, and other states destabilized power grids, forcing miners to voluntarily shut down operations to protect infrastructure.

Major players like Marathon Digital and Riot Platforms had no choice but to power down their machines as grid operators requested curtailment. The timing couldn't have been worse, hitting an industry already squeezed by bitcoin's retreat from its $126,000 all-time high toward the $100,000 level.

Survival Mode Activated

CryptoQuant's Miner Profit and Loss Sustainability Index has crashed to 21—its lowest reading since November 2024. This signals that a growing share of the network is operating in deeply stressed conditions, with revenues failing to cover basic operational costs.

The irony? While mining difficulty has decreased as machines went offline, the relief hasn't been nearly enough to offset falling prices and operational disruptions. If hashrate remains suppressed, further difficulty adjustments could provide some margin relief in coming weeks—but that's cold comfort for miners bleeding cash today.

What This Means for Your Portfolio

For bitcoin investors, this mining crisis presents a complex picture. Short-term, network security concerns could weigh on prices as hashrate concentration risks become apparent. The fact that weather in one region can trigger such massive disruption raises questions about bitcoin's resilience.

But there's a potential silver lining. This shakeout could eliminate inefficient miners, ultimately strengthening the network. Historical precedent suggests that mining crises often precede periods of consolidation and technological advancement.

For those considering mining investments, the message is clear: geographic diversification and operational efficiency matter more than ever. The days of easy mining profits are long gone.