Bitcoin miners face $14B loss amid hashprice drop

Bitcoin (CRYPTO:BTC) miners are experiencing significant financial pressure due to a decline in hashprice and transaction fees, erasing gains made during the U.S. election cycle.

The hashprice, which measures the revenue miners earn per unit of computing power, fell to $45/PH/s, impacting the profitability of mining operations, particularly for inefficient miners.

In February 2025, Bitcoin's hashrate increased by 3.8% to 810 EH/s, indicating a slowdown in mining competition growth.

However, this rise in hashrate did not translate into higher revenues for miners due to the drop in hashprice and transaction fees.

Transaction fees accounted for just 1.3% of total block rewards in February, marking the lowest share since October 2022.

This trend continued into March, with fees dropping further to 1.12%.

The decline in transaction fees, combined with rising energy costs and increased competition from AI data centers, is exacerbating financial challenges for miners.

The market capitalisation of major Bitcoin mining stocks suffered significantly, with a combined decline of $14 billion in February.

Companies like Cipher, Canaan, Hut 8, HIVE, and Bitdeer experienced losses exceeding 40%.

MARA remains a leader in the industry with a hashrate of 44 EH/s, while CleanSpark saw a 12% increase to 39 EH/s.

Despite these challenges, total Bitcoin holdings among miners surpassed 100,000 BTC for the first time, reflecting a strategic decision by some firms to hold onto their production rather than sell it.

At the time of reporting, the Bitcoin (BTC) price was $83,995.18.