Rising costs and shrinking revenue push payback periods beyond 1,000 days, amplifying stress across the sector
Bitcoin miners are confronting an unusually severe profitability crunch as revenue per unit of compute power sinks to historic lows and operating expenses continue to rise. Industry analysts warn that the current squeeze is testing even the most established companies.
Fresh data indicates that miners are navigating the harshest margin environment the sector has seen, marked by a sharp drop in hashprice, the metric that reflects earnings per petahash of computing power. Average revenue, which hovered near $55 per PH/s earlier this year, has slipped to around $35 per PH/s — a level viewed by analysts as a structural decline rather than a momentary setback.
The downturn has been amplified by Bitcoin’s recent price correction, with the asset sliding from a record high near $126,000 in October to below $80,000 in November. As a result, cost-per-hash has become a critical reference point, exposing widening disparities in operational efficiency. New-generation rigs now require more than 1,000 days to pay for themselves — a striking figure considering the next halving is less than 850 days away.
“Miners are being forced to rethink capital allocation at every level,” THe MinerMag said. “The economics are tightening faster than many expected.”
Balance-sheet strain is becoming visible. Some firms have turned to deleveraging and liquidity preservation, including recent moves by major operators to retire Bitcoin-backed credit lines.
Publicly traded mining companies have also suffered steep drawdowns. Since mid-October, shares of several large miners — including MARA, CleanSpark, Riot Platforms and HIVE Digital — have fallen between 32% and 54%. One market strategist noted, “Equities are reflecting not just Bitcoin’s price slump but a fundamental reset in mining profitability.”
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