Bitcoin Hashrate Falls 12% After US Winter Storm Hits Miners
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Severe winter storms across the United States forced large operators to shut down, dragging down network hashrate, production and revenues, and bitcoin mining activity suffered its worst decline in more than four years.
Key Takeaways:
US winter storms forced miners offline, causing a 12% drop in Bitcoin network hashrate.
Mining revenues and production have dropped significantly as power outages hit major operators.
The decline would mark the biggest output decline since the post-halving period in 2024.
Since November 11, the total network hashrate has fallen by 12 percent, marking the biggest drop since October 2021, when the network was still stable after the Chinese mining ban was lifted.
According to CryptoQuant data, hashrate is now sitting near 970 exhashes per second, the lowest level since September 2025.
US winter storms force miners offline, Hashret slippage plunges
The cuts increased this week as extreme cold disrupted power supplies at several U.S. mines.
Publicly listed miners temporarily shut down machines to protect infrastructure and comply with requests for grid outages, underscoring a slowdown that began when bitcoin retreated from an all-time high of $126,000 late last year to the $100,000 level.
Hashret's panic quickly seeped into mining economics. Daily Bitcoin mining revenue slipped from around $45 million on January 22 to an annual low of $28 million two days later.
Although revenue has since recovered slightly to $34 million, it remains below recent averages, reflecting both reduced network activity and weaker ratings.
Production data points to an equally sharp contraction. Profits from the largest publicly traded miners dropped from 77 Bitcoin to just 28 Bitcoin per day.
Production from other miners dropped from 403 bitcoins to 209 bitcoins, significantly reducing the total network production.
Looking at a 30-day rolling basis, publicly listed miners recorded a 48-bitcoin production decline, the largest decline since May 2024, the most recent halving event.
The biggest drop since July 2024 was 215 bitcoins, underscoring the widespread impact of the disruption.
Bitcoin mining profitability has reached its lowest level since November 2024
Profitability worsened with the fall. CryptoQuant's Mining Profit and Loss Sustainability Index dropped to 21, the lowest reading since November 2024.
The rating reflects deep concern for the sector, with revenues failing to cover operating costs for a growing share of the network, despite several downside risks in recent years.
While the mining woes eased as the machines went offline, the relief wasn't enough to offset declining prices and weather-related operational disruptions.
If Hashrate remains depressed, further easing may follow in the coming weeks, providing some marginal relief to operators staying online.
According to a recent analysis by independent researcher Daniel Batten, Bitcoin mining could strengthen electricity grids and lower consumers' electricity costs more than just refining power systems.
His research challenges common claims that mining disrupts grids or increases energy costs, using peer-reviewed research and operational data to demonstrate that the industry's dynamic energy use has measurable systemic benefits.
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