Bitcoin Mining’s 15-Year Crisis: Why This Shakeout Could Spark the Next Bull Run

The hash rate is dropping. Machines are going silent. For the first time since the Great Financial Crisis birthed Bitcoin, its foundational industry faces an existential squeeze.

The Perfect Storm Hits the Mines

It's not one problem, but a convergence. Soaring energy costs slice into margins that were already paper-thin. The latest halving event cut the block reward in half, a scheduled austerity that many operations weren't prepared for. Regulatory headwinds in key jurisdictions add another layer of friction, forcing miners to play a global game of regulatory arbitrage just to keep the lights on.

Weak Hands Get Shaken Out

This is the market's brutal efficiency at work. Inefficient operators running outdated hardware on expensive power are being purged from the network. Their capitulation is a necessary cleanse—freeing up energy contracts and market share for the survivors. It's Darwinism, powered by silicon and electricity.

The Silver Lining for the Network

Paradoxically, a mining crisis strengthens Bitcoin itself. As less efficient miners drop off, the network's difficulty adjusts downward. This lowers the break-even point for remaining miners and reduces sell pressure from operations needing to cover costs. It's a self-healing mechanism that sets the stage for the next upswing—once the weak hands finish selling to the strong ones, of course. A classic Wall Street playbook, just with more computer fans.

The takeaway? Don't mistake a mining shakeout for a network failure. This is the system working as designed, weeding out inefficiency before the next cycle begins. The computers that survive will be leaner, meaner, and ready to mint the next generation of digital gold.

In brief

• The hashprice plunges to $35/PH/s, making bitcoin mining barely profitable.
• Recent machines require more than 1,000 days to cover their acquisition cost.
• Major crypto sector players redirect their investments toward artificial intelligence and HPC.
• Miners’ revenues drop in November, marking the fourth least profitable month of 2025.

Bitcoin: Machines running at a loss, debts exploding

The bitcoin mining industry is facing a historic turbulence zone. The reason: a double whammy. On one side, the hashprice – this unit measuring revenue per computing power – fell to $35/PH/s, down from $55/PH/s in the third quarter. On the other, costs related to electricity, hardware, and operating expenses continue to rise.

Result: latest generation machines take over 1,000 days to become profitable. Problem? The next halving is scheduled in about 850 days. In other words, the reward reduction will come before the return on investment.

Even the most efficient operators, such as those cited in the public Q3 reports, are no longer making real profits. And debt doesn’t help matters:

CleanSpark’s decision to fully repay its bitcoin-backed credit line at Coinbase — just weeks after raising over a billion dollars through convertible bonds — illustrates how quickly miners are turning toward deleveraging and preserving their liquidity.

The crypto industry pivots to artificial intelligence

The crypto sector now swears by two letters: AI. A real shift is happening. The 100% mining model seems to be at its end. The hash cost (around $44/PH/s on average according to Q3 data) weighs too heavily on margins. So, some are packing up.

Bitfarms already announces the gradual end of its mining activities by 2027. Others follow the same path. Among the top ten miners by power, seven already generate revenue from artificial intelligence or HPC (High Performance Computing). The other three have projects in the pipeline.

And for those who think it’s just a fad, this sentence sums up the new turn:

Meanwhile, the third and fourth quarters marked an aggressive return to debt financing — shifting from low-coupon convertible bonds to higher-cost secured senior bonds — as miners seek to finance their transition to HPC and artificial intelligence.

Crypto: November red for revenues and valuations

If November were to have a nickname, it WOULD be the month of crypto pain. Miners’ revenues fell 20.9%, dropping from $1.595 billion to $1.262 billion. Only $9 million came from transaction fees. Basically: peanuts.

Meanwhile, the global network hashrate was off the charts with 1.1 ZH/s. Translation? The network is more competitive than ever but also harder to profit from. Margins are shrinking, nerves too.

And as if that wasn’t enough, the financial markets haven’t spared listed miners. MARA, CleanSpark, Riot… all have seen their valuations collapse. Some by up to 54%. Constant pressure, an uncertain future, and an adaptation that becomes vital.

What to remember, in a few figures:

• $87,061: bitcoin price at the time of writing;
• $35/PH/s: current hashprice level, considered a structural floor;
• 1,000 days: average time to break even on a latest generation mining machine;
• $3.5 billion: raised in Q3 by miners through convertible bonds;
• 7 out of 10: the largest miners in the world have already started their pivot to AI or HPC.

Even if panic reigns in mining warehouses, some analysts keep their eyes on the current week. In their view, it could be decisive to shape the end of the year. A kind of last turn in an obstacle-laden race. Because in the crypto world, everything can flip in a block.

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