Bitcoin mining activity has suffered its biggest blow since late 2021 after severe winter storms in the United States forced several large mining companies to curtail operations, triggering a sharp decline in network computing power, output and revenue.
Bitcoin’s total network hashrate has dropped by approximately 12% since November 11, the largest drop since October 2021, when the network was still recovering from China’s sweeping mining ban.
According to data from CryptoQuant, the hash rate is currently close to 970 exahash per second, which is the lowest level since September 2025.
The losses accelerated this week as extreme weather disrupted power supplies to major U.S. mining hubs.
Several publicly traded miners temporarily shut down their machines to protect infrastructure and comply with grid rationing requirements, exacerbating a weakening trend that began when Bitcoin fell back to the $100,000 level from a record high of $126,000 late last year.
The computing power shock quickly affected the miner economy. Just two days later, daily Bitcoin mining revenue fell to a yearly low of $28 million, from about $45 million on January 22. While revenue has since rebounded slightly to around $34 million, it is still well below recent averages, reflecting reduced network activity and weak Bitcoin prices.
Production data showed a similarly sharp contraction. The output of the largest publicly traded miner dropped from 77 Bitcoin per day to just 28 Bitcoin during the same period. The output of other miners dropped from 403 Bitcoin to 209 Bitcoin, causing the total network output to drop sharply.
On a rolling 30-day basis, publicly traded miners’ Bitcoin production fell by 48 units, the largest drop since May 2024, shortly after the last halving. Production from private miners fell by 215 BTC, the largest drop since July 2024.
Profitability also deteriorated, further putting pressure on energy-intensive businesses.
CryptoQuant’s Miner Profit and Loss Sustainability Index has dropped to 21, the lowest reading since November 2024. This level indicates that miners are operating under very tight conditions, with revenues failing to cover the costs of increasing network share despite multiple difficulty reductions in recent periods.
While difficulties eased as machines were taken offline, the mitigation measures were not enough to offset the impact of lower prices and operational disruptions. If hashrate remains suppressed, the network may lower the difficulty further in the coming weeks, providing some margin relief.
Currently, data suggests this is one of the most challenging times Bitcoin miners have faced since China’s ban was reset more than four years ago.
