Cointime

Cointime

Download App
iOS & Android

Bitcoin Mining Profits Hit 14-Month Low After Winter Storm Rocks Miners: CryptoQuant

In brief

  • The Bitcoin mining profit/loss sustainability index hit a 14-month low, according to CryptoQuant.
  • The metric measures the price of Bitcoin versus the profitability of running a Bitcoin mining operation.
  • Shares of publicly traded BTC miners have fallen by double digits this week.

Bitcoin miners are struggling to eke out a profit lately amid the asset’s falling price and external complications, including a winter storm that rocked a large chunk of the United States last weekend, impacting the production of top mining firms.

A ratio that tracks the relationship between Bitcoin’s price and the profitability of running Bitcoin mining operations has hit a 14-month low, according to data from CryptoQuant. 

“The miner profit/loss sustainability index is at 21, the lowest since November 2024,” the firm wrote in its latest mining report, released Thursday.

In other words, with Bitcoin’s price falling sharply this week and its current mining difficulty level, miners are “extremely underpaid,” according to CryptoQuant. And that’s despite the fact that the network’s hash rate, or the measurement of all the network’s computer power, has dropped in five consecutive epochs and is at its lowest mark since September 2025.

In addition to Bitcoin miners being “extremely underpaid” based on the aforementioned index, some were severely impacted by a recent major winter storm that blanketed the eastern United States, barraging multiple states in ice and snow.

The winter storm, which led to a further decrease in hash rate, also dropped daily mining revenues to a yearly low of $28 million, according to the data firm. 

The production decrease coincided with a bleaker market for traditional equities and crypto assets, where shares in publicly traded miners like MARA Holdings, CleanSpark, and Riot Holdings all have fallen by double-digit percentages in the last five trading days. 

Bitcoin has fared only slightly better, dropping 6% in the last seven days to change hands at $83,956—about 33% below its October all-time high of $126,080.

Earlier this week, data from the Cambridge Bitcoin Electricity Consumption Index highlighted that it now costs more to mine BTC than to buy it on the open market. 

The financial difficulties, and opportunities provided by demand for AI compute, have led some publicly traded miners like Bitfarms and Bit Digital to completely wind down their operations in search of more beneficial business models for shareholders. 

A representative for CryptoQuant did not immediately respond to Decrypt’s request for comment.

Comments

All Comments

Recommended for you

  • Amazon Shares Surge 15.2%, Biggest Gain Since 2012

    On July 31, Amazon shares surged 15.2% to $271.255 per share, marking their biggest gain since 2012, with a total market value of $2.92 trillion.

  • US Treasury Secretary Bessent Vows to Track Down Iranian Assets Globally for Terror Victims

    US Treasury Secretary Bessent said the US will actively track down Iranian assets worldwide to ensure compensation funds for victims of Iran-backed terrorist activities. Bessent stated that the US government's military and economic blockade measures against the Iranian regime will continue and will not be relaxed. (Jinshi)

  • Apple Plunges Nearly 10%, Q4 Revenue Guidance Misses Expectations

    On July 31, Apple (AAPL.US) plunged nearly 10% to $300.33, marking its biggest drop since April 2025. In terms of fundamentals, Apple's third-fiscal-quarter revenue rose approximately 16% year-over-year to $109.42 billion, slightly above analyst expectations. Among the details, product revenue came in at $78.68 billion, beating the expected $77.25 billion. However, services revenue—a key driver of its valuation re-rating in recent years—totaled $30.74 billion, missing the consensus estimate of $31.36 billion. Additionally, Greater China revenue reached $18.82 billion, with year-over-year growth slowing to 22%, also below analysts' forecast of $19.58 billion. During the earnings call, Apple guided fourth-fiscal-quarter revenue growth in the range of 9% to 11%, overall below the 12.1% analysts had expected. CFO Parekh noted that component supply constraints would impact iPhone, Mac, and iPad businesses in the fourth fiscal quarter, with currency fluctuations also constraining growth.

  • Three Fed Officials Back Rate Hike, Hawkish Pressure Builds

    On July 31, three Federal Reserve policymakers said that dissenting votes in favor of a rate hike this week stemmed from stubborn inflationary pressures, highlighting rising internal pressure on Fed Chair Warsh to act. In statements released Friday morning, Hammack and Kashkari said they worry that although the current round of price increases may stem from short-term factors such as President Trump's tariff policies and the Iran war, the inflation situation already warrants Fed action. Logan also joined in, saying that even if inflation cools, if the Fed does not raise rates, inflation is unlikely to fully fall back to the Fed's 2% target; without any policy constraints, inflation could continue to run above target until an unexpected shock occurs. Kashkari said that if inflation remains persistently stubborn, he might support a series of rate hikes, not just a single increase, to prevent inflation from becoming further entrenched. He said: "A series of small policy adjustments may be preferable to waiting for developments to unfold and ultimately having to take more forceful action." Hammack said that if the Fed does not tighten policy, price increases could continue to accelerate. She said: "Inflation has been stubbornly above 2% for more than five years, and I have no confidence that it will return to our target on its own." (Jin Shi)

  • US 10-Year Treasury Yield Rises to 4.7388%, Highest Since January 2025

    On July 31, the US 10-year Treasury yield rose to 4.7388%, the highest level since January 2025.

  • Spot Gold Intraday Decline Widens to 2%, at $4,021.08 per Ounce

    On July 31, spot gold's intraday decline widened to 2%, reported at $4,021.08 per ounce.

  • BTC Falls Below $63,000

    Market数据显示，BTC has fallen below $63,000, currently reported at $62,985.99, with a 24-hour decline of 2.99%. Market volatility is significant, please exercise risk control.

  • Fed's Logan: Leaning Toward 25 Basis Point Rate Hike

    On July 31, Federal Reserve Governor Logan said she leans toward a 25 basis point rate hike, believing inflation has not yet entered a sustainable path back to the Fed's 2% target. Logan stated that taking moderate action now would reduce the risk of needing more aggressive tightening in the future, while emphasizing that the Fed cannot rely on unexpected shocks to achieve its inflation target.

  • Fed's Logan: Taking Modest Actions Now Reduces Likelihood of Needing Stronger Action Later

    On July 31, Dallas Fed President Lorie Logan said that taking modest actions in the near term would reduce the likelihood of needing to take stronger action in the future.

  • Philadelphia Semiconductor Index Erases 5% Gain, Turns Lower

    On July 31, U.S. chip and semiconductor stocks rapidly weakened, with the Philadelphia Semiconductor Index wiping out a 5% gain and turning lower. Micron Technology, which had risen 6%, is now down 4.2%. SanDisk, which had gained nearly 10%, is now down over 6%. SK Hynix and Seagate Technology, which had risen over 8%, are now down 2%. TSMC, which had gained 4%, is now down nearly 1%.

Daily Must-Read

Popular Activities

RaveDAO at Terra Solis by Tomorrowland: A Female-Led Techno Night Where Web3 Culture Converges

RaveDAO at Terra Solis by Tomorrowland: A Female-Led Techno Night Where Web3 Culture Converges

April 30 - April 30
Dubai

Popular Tags

Cointime
News
Contents
RSS
Company