Main Points:
- Steady Hash Price Amid Difficulty Increase: Despite a 1.4% rise in Bitcoin mining difficulty—from 112.1 trillion to 113.76 trillion—the mining hash price remains stable at approximately US$48 per petahash per second (PH/s).
- Pressure on Older ASIC Hardware: Miners using older models like the Antminer S19 XP and S19 Pro face heightened financial burdens if the hash price falls below US$50, potentially forcing them to upgrade or temporarily halt operations.
- Impact of Bitcoin Halving and Macro Uncertainty: Following the upcoming Bitcoin halving in April 2024, which will reduce block rewards to 3.125 BTC, the increased network difficulty coupled with overall market uncertainty is squeezing miner profitability.
- Diversification Challenges for Mining Companies: Even those diversifying into AI and high-performance computing (HPC) data center operations are experiencing financial stress, with JP Morgan reporting a 22% drop in the stock prices of publicly traded Bitcoin mining companies as of February 2025.
- Rising Network Hashrate and External Pressures: The continuous increase in the Bitcoin network’s hashrate intensifies competition, requiring miners to invest more computing resources. Additional concerns include ongoing trade tensions between the United States and Canada, and potential tariffs on energy exports from Canada to the U.S.
1. Introduction
Bitcoin mining remains a cornerstone of the cryptocurrency ecosystem, yet it faces mounting challenges. Recent data from CoinWarz indicate that even though the Bitcoin mining difficulty has slightly increased, the hash price—the revenue earned per unit of computational power—has remained stable. This dynamic has significant implications for miners, especially those operating older hardware.
2. Hash Price Stability Amid Rising Difficulty
According to the latest figures, Bitcoin’s mining difficulty rose by 1.4% to 113.76 trillion as of block 889,081 on March 23. Despite this increase, the hash price has held steady at roughly US$48 per petahash per second (PH/s). The flat hash price means that even though it’s becoming harder to mine new blocks, the earnings per unit of computational power are not increasing.
3. Challenges for Older ASIC Miners
TheMinerMag warns that when the hash price falls below US$50, miners using older ASIC hardware such as the Antminer S19 XP or S19 Pro may struggle to remain profitable. With declining network fees and the financial pressures from higher mining difficulty, some miners might be forced either to upgrade their equipment or to pause operations until conditions improve.
4. Bitcoin Halving and Market Uncertainty
The mining landscape has grown even more challenging as the industry braces for the Bitcoin halving scheduled for April 2024. At that time, block rewards will decrease to 3.125 BTC, squeezing miner revenue further. Coupled with an overall rise in network difficulty and broader market uncertainty, many mining operations are facing a financially precarious future.
5. Diversification Pressures and Financial Stress
Financial services firm JP Morgan has highlighted additional stress on the industry. Their research shows that the stock prices of publicly traded Bitcoin mining companies dropped by 22% in February 2025. Even companies that diversified into AI and high-performance computing (HPC) data centers are not immune to these pressures. JP Morgan points to the emergence of “DeepSeek R1,” an open-source AI model that delivers performance comparable to leading proprietary models at much lower costs, thereby intensifying competition in the AI data center space.
6. Rising Network Hashrate and External Trade Tensions
The Bitcoin network’s hashrate—the total computational power—continues to grow steadily, intensifying the competition among miners. This upward trend necessitates continuous investments in additional computational resources, further straining the profit margins of many operations. External factors are also at play; prolonged trade tensions between the United States and Canada, as well as potential tariffs on energy exports from Canada to the U.S., are adding another layer of uncertainty for mining operations.
7. Conclusion
In summary, Bitcoin mining remains in a challenging phase. Despite a modest increase in mining difficulty, the hash price has stayed flat, leaving miners—especially those with older ASIC hardware—under significant financial pressure. The upcoming Bitcoin halving, rising network difficulty, and broader market uncertainties are converging to create a precarious environment for miners. Furthermore, diversification into areas such as AI data centers is proving insufficient to fully offset these pressures, as evidenced by recent declines in mining company stock prices and the competitive threat posed by cost-effective, open-source AI models. As external trade tensions continue to simmer, the mining industry must navigate these challenges to remain viable in an increasingly competitive landscape.
