Bitcoin Mining Enters Zetahash Era as Profitability Declines Amid Price Pressures

Bitcoin Mining Reaches Zetahash Era – Profits Become Scarcer

The Bitcoin mining industry has reached a significant milestone, entering the Zetahash era with a network hashrate exceeding 1 ZH/s as of late 2025, according to a report by GoMining. Despite this record increase in hashrate, miner profitability has declined, indicating a shift towards a more industrialized mining sector that is now more exposed to price risks than ever before.

The report highlights that the Bitcoin network maintained an average hashrate of over 1 ZH/s over a seven-day period, marking a fundamental change rather than a temporary spike. This growth is attributed to rapid hardware improvements, new data centers, and an expansion of industrial activities, making the competition for block rewards significantly tougher.

“The earnings of miners today are almost solely dependent on the Bitcoin price and the difficulty level,” the report states.

As a result, miners are operating with much lower profit margins despite increased capital and energy investments. The report also notes that the Bitcoin mempool was completely cleared multiple times in 2025, indicating a lack of transactions and minimal earnings from transaction fees.

In summary, while the hashrate has surged, the profitability of miners has sharply declined, making the Bitcoin price more critical for their economic viability.

Bitcoin Miner Increases Hashrate by 290% in Just One Year

HIVE Digital Technologies reported a remarkable operational progress, nearly quadrupling its hashrate for the Bitcoin network within a year, achieving an average hashrate of 22.2 Exahash per second in January 2026. This increase resulted in the production of approximately 297 Bitcoin, showcasing the growing importance of global data center networks and the role of renewable energy in mining operations.

Despite the significant growth, the mining difficulty has increased by around 30% year-on-year, which the company attributes to more efficient hardware and optimized energy usage. HIVE's fleet efficiency, a key performance indicator in mining, reached about 17.5 Joules per Terahash, indicating lower energy consumption.

In conclusion, HIVE's advancements in hashrate and efficiency highlight the company's strategic positioning in the competitive Bitcoin mining landscape.

Bhutan Sells Bitcoin Worth $22.4 Million – Portfolio Drops Over 70%

This week, Bhutan transferred $22.4 million in Bitcoin, including a direct transaction to QCP Capital, surprising the community. The country's crypto portfolio has plummeted from a peak of $1.4 billion to approximately $412 million, reflecting a loss of over 70% due to sales and market downturns.

Since starting its Bitcoin mining operations in 2019, Bhutan has generated over $765 million in profits. However, the upcoming halving in 2024 is expected to double mining costs, prompting the government to convert its reserves into cash rather than continue mining at reduced profitability.

In summary, Bhutan's recent Bitcoin sales indicate a strategic shift in its crypto strategy amidst significant market pressures.

Daily Bitcoin Mining Revenue Plummets to Yearly Low of $28 Million

Daily revenues from Bitcoin mining have fallen to $28 million, the lowest level this year, as prices and margins have collapsed. The hash price has dropped to 3 cents per Terahash, forcing many miners to shut down their operations due to soaring electricity costs.

Major mining companies have seen their stock prices plummet, with CleanSpark, Terawulf, MARA, and Riot all experiencing significant losses in a single trading day. The combination of a declining Bitcoin price and rising operational costs has created a challenging environment for miners.

In conclusion, the current state of Bitcoin mining reflects a severe downturn, with revenues and profitability under intense pressure.

Bitcoin Faces Death Spiral Risk as Prices Drop

Investor Michael Burry warns of a potential death spiral for Bitcoin if prices fall below $70,000. This scenario could lead to significant unrealized losses for publicly traded Bitcoin holders, particularly affecting companies like MicroStrategy, which holds a substantial amount of Bitcoin.

Burry suggests that a drop below $60,000 could trigger acute stress among Bitcoin treasury companies, leading to increased selling pressure and further price declines. If Bitcoin falls below $50,000, many mining companies may be forced to cease operations, exacerbating the downward trend.

In summary, the risk of a death spiral for Bitcoin is heightened as prices approach critical thresholds, potentially leading to widespread market instability.

Miner Capitulation Returns as Bitcoin Price Falls Below Production Costs

Bitcoin is currently trading about 20% below its estimated average production costs of $87,000, a situation that historically indicates a bear market. As the price hovers around $70,000, many miners are facing financial pressure, leading to continued selling of Bitcoin holdings to cover operational costs.

The hashrate has seen a decline of approximately 20% from its all-time highs, with many less efficient miners being forced offline. This ongoing capitulation underscores the financial strain within the Bitcoin mining sector.

In conclusion, the return of miner capitulation highlights the challenges faced by the industry as Bitcoin prices remain below production costs.

Sources:

• Bitcoin-Mining erreicht Zetahash-Ära – Gewinne werden knapper
• Bitcoin-Miner steigert Rechenleistung um 290% in nur einem Jahr
• Bhutan verkauft Bitcoin im Wert von 22,4 Mio. USD – Portfolio fällt um über 70 Prozent
• Tägliche Bitcoin -Mining-Einnahmen sinken aufgrund des Krypto-Ausverkaufs auf ein Jahrestief von 28 Millionen Dollar
• Bitcoin droht Todesspirale
• Die Miner-Kapitulation kehrt zurück, da der Bitcoin-Preis von 70.000 USD die Produktionskosten von 87.000 USD nicht deckt