Bitcoin Hashrate Plummets to Seven-Month Low During Harsh US Winter Storm

Bitcoin Hashrate Drops to Seven-Month Low Due to US Winter Storm

The Bitcoin network's hashrate fell to its lowest level in seven months over the weekend as a severe winter storm swept across the United States, forcing miners to reduce operations due to increased energy demands and widespread power outages. According to AccuWeather, the massive storm system affected over three dozen US states, bringing heavy snowfall, ice, and frigid temperatures, leaving around one million customers without power.

Data from the mining analytics platform CoinWarz indicates that Bitcoin's hashrate began to decline on Friday before plummeting over the weekend. By Sunday, the network's computational power had dropped to approximately 663 exahashes per second (EH/s), representing a decrease of more than 40% in just two days. Since then, the hashrate has recovered, rising to about 854 EH/s by Monday.

"Approximately 40% of the global Bitcoin mining capacity went offline in the last 24 hours due to the extreme winter weather," stated Abundant Mines, an Oregon-based miner.

In the context of the storm, Bitcoin miners have been recognized for their role as flexible energy consumers, contributing to grid stability during peak demand periods. The storm also significantly impacted Bitcoin production, with analysts noting a sharp decline in daily output from several major US mining companies.

Key Takeaways:

Bitcoin's hashrate fell to 663 EH/s, a 40% drop over two days.
Recovery to 854 EH/s was noted by Monday.
Miners played a crucial role in stabilizing the power grid during the storm.

Bitcoin Miners Surge Following Anthropic's $20 Billion Funding Round

Bitcoin mining companies saw significant gains as news broke that Anthropic, the developer of the AI chatbot Claude, is set to raise approximately $20 billion in its latest funding round, double the initially targeted amount. This funding round, which values the company at $350 billion, has positively influenced sentiment in the AI sector, leading to notable increases in Bitcoin mining stocks such as IREN, TeraWulf, Cipher Mining, and Hut 8.

On Tuesday, IREN and CIFR stocks rose by more than 12%, while HUT and WULF saw increases of over 8%. The influx of capital into AI infrastructure has sparked optimism among Bitcoin miners, who are increasingly positioning themselves as key players in the AI landscape.

Key Takeaways:

Anthropic's funding round is set at $20 billion, boosting AI sector sentiment.
Bitcoin mining stocks IREN and CIFR rose over 12% following the news.
Miners are adapting to become more integrated with AI infrastructure.

Riot Platforms Repositions as AI Infrastructure Developer

Riot Platforms has recently held a conference call to discuss transformative transactions aimed at advancing its rapidly growing data center operations. This includes a leasing agreement focused on AI with AMD and new infrastructure initiatives in Texas, marking a significant shift from being solely a Bitcoin miner to a broader role as an AI and high-performance computing infrastructure provider.

Investors are now required to believe in Riot's potential to evolve from a cyclical Bitcoin miner to a more diversified digital infrastructure business. The company is focusing on AI-oriented data centers alongside its core Bitcoin mining operations, which have historically provided high growth but remain heavily dependent on the volatile cryptocurrency market.

Key Takeaways:

Riot Platforms is transitioning to include AI infrastructure alongside Bitcoin mining.
Recent agreements with AMD signal a strategic shift in business focus.
Investors must consider the company's ability to diversify without losing financial discipline.

Bitcoin Experiences Healthy Consolidation Amid Market Changes

As of January 28, 2026, Bitcoin is trading around $89,000, recovering from yearly lows of $87,700. Following a sell-off in Q4 2025, a report from Coinbase Institutional and Glassnode indicates a structural shift, suggesting that Bitcoin has shed excess leverage and may be entering a more stable market phase.

Notably, there has been a significant shift in Bitcoin derivatives, with open interest in Bitcoin options surpassing that of perpetual futures for the first time. This indicates a growing trend among investors to pay for downside protection rather than aggressively betting on price increases.

Key Takeaways:

Bitcoin is currently trading at $89,000, recovering from lows.
Open interest in Bitcoin options has surpassed perpetual futures.
Market sentiment is shifting towards protective strategies among investors.

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