Odaily Planet Daily reports: According to CoinShares, Bitcoin mining companies face significant profit pressure at the end of 2025 and beginning of 2026 due to a decline in Bitcoin’s price, network hash rate approaching historical highs, and a drop in hashprice. In the fourth quarter of 2025, the average all-in cost per Bitcoin for publicly traded mining companies rose to approximately $79,995, while hashprice fell from $36–38 per PH/s/day to a range of $28–30 in the first quarter of 2026, continuously squeezing industry profit margins.
The report notes that this has been one of the most challenging periods since the 2024 halving. During this time, Bitcoin’s price declined from a peak of approximately $125,000 to around $86,000, compounded by intensifying hash rate competition, pushing some mining companies to or below their break-even points. Signs of industry consolidation have emerged, including three consecutive difficulty reductions—the first such streak since July 2022—and cumulative sell-offs of over 15,000 BTC by publicly traded miners, with companies such as Core Scientific, Bitdeer, Riot, and MARA all engaging in asset disposals. In this context, mining companies have significantly accelerated their transition toward AI and high-performance computing (HPC). CoinShares estimates that by the end of 2026, revenue from AI operations for publicly traded miners could rise from the current ~30% to 70%, with over $70 billion in related contracts already announced across the industry. Companies including IREN, TeraWulf, Core Scientific, Cipher, and Hut 8 are rapidly transforming into data center operators, while MARA continues to focus primarily on mining. Meanwhile, the AI transition has also increased industry leverage: IREN has issued approximately $3.7 billion in convertible bonds, TeraWulf’s total debt has reached $5.7 billion, and Cipher has issued $1.7 billion in senior secured notes, altering the industry’s risk profile.
Looking ahead, CoinShares believes mining profitability will heavily depend on Bitcoin’s price movement: if BTC rebounds to $100,000, hash rate prices could rise to approximately $37 per PH/s/day; if it returns to its previous high of $126,000, they could reach around $59; conversely, if Bitcoin remains below $80,000 for an extended period, industry pressures will persist, though some miner shutdowns may help reduce supply and stabilize revenues. (The Block)