In the first quarter of 2026, Bitcoin miners faced growing pressure on profitability, pushing some operators beyond the break-even point. CoinShares analysts reached this conclusion after analyzing mining costs, energy distribution, and the structure of the hash rate.
The market continues to shift in favor of large players, while less efficient operations are gradually being pushed out.
Up To One-Fifth Of Capacity Is Operating At The Edge Of Profitability
According to the report, around 15–20% of mining capacity is either barely profitable or already operating at a loss. The main factors are high electricity costs and outdated equipment that can no longer compete under current conditions.
Even though the average cost of mining has declined, some operators still cannot keep up with more advanced setups. Meanwhile, the growing hash rate continues to put additional pressure on margins.
The Market Is Narrowing In Favor Of Large Operators
Large companies are steadily increasing their share of the network by expanding infrastructure and upgrading their equipment. Access to capital and cheaper energy sources allows them to operate with a more sustainable cost structure.
At the same time, small and mid-sized players are losing ground, уступая вычислительные мощности более эффективным игрокам. The distribution of the hash rate is becoming less even.
The share of renewable energy continues to grow, reducing average costs across the market. Mining operations are increasingly being located in regions with excess power generation, where electricity is cheaper.
However, access to such resources is limited, and it largely determines which operators remain profitable.
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