Bitcoin Hashrate Collapses 12% as US Freeze Compels Miner Shutdowns
Severe US winter storms forced a massive miner shutdown, driving Bitcoin’s hashrate down 12% and slashing daily revenue to $28 million.
Network stress hits levels unseen since the 2021 China ban as winter storms knock US fleets offline.
Bitcoin’s network hashrate has plummeted approximately 12% since November 11, marking its most severe contraction since the CryptoQuant data recorded the aftermath of China’s mining ban in 2021. While the decline began late last year, a severe winter storm sweeping the United States this week forced massive mining operations to power down, accelerating the drop to a localized low of 970 EH/s.
The physical disruption has compounded a brewing financial crisis for the sector. Daily mining revenue evaporated, falling from roughly $45 million to a yearly low of $28 million in just 48 hours. This liquidity shock hit public miners hardest: aggregate daily output from major listed firms collapsed from 77 BTC to just 28 BTC, a 63% reduction that underscores the fragility of concentrated US mining infrastructure.
The Double Blow: Weather and Price
Miners are now fighting a two-front war. The operational freeze coincided with Bitcoin struggling to hold the $79,000 level (-3% in 24h), down sharply from its October high of ~$126,000. This price action has pushed miner profitability into the danger zone.
“The miner profit/loss sustainability index is at 21, the lowest since November 2024. Miners are extremely underpaid.” . CryptoQuant Analyst
The Glassnode and CryptoQuant data reveal a sector in survival mode. Even with difficulty adjustments attempting to calibrate the network, the combination of sub-$80k Bitcoin and idle hardware means profit margins have effectively vanished for inefficient operators.
