Bitcoin mining profitability has plunged to a 14-month low, according to data from CryptoQuant. The firm’s miner profit/loss sustainability index shows miners are now “extremely underpaid” as Bitcoin’s price falls and mining difficulty remains high. This pressure is compounded by a major U.S. winter storm that reduced mining output, driving daily revenues down to a yearly low of $28 million.
Bitcoin miners are facing severe financial strain as a key profitability metric hits its lowest point since November 2024. Data from CryptoQuant reveals the miner profit/loss sustainability index has fallen to 21, indicating miners are “extremely underpaid.”
This downturn coincides with Bitcoin’s price declining 6% over a week to $83,956. The asset now trades approximately 33% below its all-time high of $126,080 reached in October.
Mining operations were further hampered by a major winter storm that impacted the eastern United States. The weather event contributed to a drop in the network’s hash rate, which has fallen for five consecutive epochs.
Daily mining revenues have plummeted to a yearly low of $28 million as a result. Separate data from the Cambridge Bitcoin Electricity Consumption Index highlights it now costs more to mine a Bitcoin than to purchase one on the open market.
Publicly traded mining companies have seen their shares fall by double-digit percentages this week. Firms like MARA Holdings, CleanSpark, and Riot Holdings have all been affected by the bleak market conditions.
Some miners are exiting the business entirely in search of more profitable models. Companies including Bitfarms and Bit Digital are winding down operations, partly driven by opportunities in AI compute demand.
