20% of Bitcoin Miners Unprofitable as Price Stays Below Cost

JPMorgan analysts report Bitcoin has traded below an estimated $78,000 production cost for five consecutive months, squeezing margins for higher-cost miners.

The bank’s model places the average production cost at about $78,000 per coin while the market price has been near $63,000 in recent months.

That gap left roughly 20% of miners operating at a loss. Publicly listed mining firms sold more than 32,000 BTC in the first quarter to cover electricity, maintenance and other operating expenses; JPMorgan noted that amount exceeds what those companies sold during all of 2025.

Network metrics have reflected the pressure. Hashrate, the total computing power securing the Bitcoin network, and mining difficulty, which adjusts to keep block production steady, have become more sensitive to price movements.

Over the past six months JPMorgan found the beta of mining difficulty to Bitcoin price rose to 0.62, indicating operators are quicker to turn machines on or off as prices move.

Mining difficulty fell by about 10% earlier this year and again in mid-June as some miners powered down equipment when revenue fell below operating costs. Lower difficulty reduces competition for block rewards and can improve returns for remaining producers.

JPMorgan expects the higher sensitivity of hashrate and difficulty to persist while Bitcoin trades materially below its estimated production cost and forecasts larger and more frequent difficulty adjustments during that period.

The sector faces rising energy costs, reduced post-halving rewards and competition from larger, better-capitalized firms with more efficient equipment. Operators without access to low-cost power, modern machines or capital face higher risk of shutting down or exiting the market.

If Bitcoin rises above the roughly $78,000 production estimate, more miners would likely restart equipment and margin pressure could ease. If prices remain below that threshold, volatility in hashrate and difficulty may continue until higher-cost miners cut capacity or leave the industry.