Simply put
- The Bitcoin Mining Profit and Loss Sustainability Index has now reached its lowest level in 14 months, according to CryptoQuant.
- This index evaluates the relationship between Bitcoin’s price and the profitability of mining operations.
- Publicly traded Bitcoin miners have seen their shares drop significantly this week.
Recently, Bitcoin miners have been having a tough time making a profit due to decreasing Bitcoin prices and a range of external issues, such as a major winter storm that hit large parts of the United States over the weekend, impacting productivity at key mining firms.
The ratio measuring Bitcoin’s price against mining profitability recently fell to a 14-month low. CryptoQuant reports that “The Miner’s P&L Sustainability Index is at 21, which is the lowest since November 2024.”
In simpler terms, miners right now are earning “extremely low” wages largely due to the significant decline in Bitcoin prices this week, coupled with high mining difficulty. Interestingly, despite these challenges, the network’s hash rate—a measure of total computing power—has dropped for five consecutive periods and is currently at its lowest since September 2025.
Aside from the unfavorable metrics showing that miners are not being compensated well, many have also been hit hard by the recent severe winter storms. The storm left various states in the eastern U.S. covered in ice and snow.
This winter weather has contributed to a further decline in hash rate, resulting in daily mining revenue falling to an annual low of $28 million, as reported by the data firm.
The drop in production comes at a time when the overall market for traditional stocks and cryptocurrency assets is also looking grim. Shares of Bitcoin mining companies like MARA Holdings, CleanSpark, and Riot Holdings have plummeted by double-digit percentages over the past week.
Bitcoin’s price has been relatively stagnant, down 6% in the last seven days, currently sitting around $83,956—about 33% lower than its peak of $126,080 in October.
Earlier this week, the Cambridge Bitcoin Power Consumption Index pointed out that mining Bitcoin has become more costly than purchasing it outright on the market.
The combination of financial strain and new opportunities in AI computing has prompted some publicly traded miners, including Bitfarms and Bit Digital, to consider winding down their operations in search of more profitable business models.
A spokesperson from CryptoQuant did not immediately respond to requests for comment.
