Bitcoin Mining Power Soars Past 1,000 EH/s, but Miners’ Struggles Intensify

Bitcoin’s network just reached a historic high in hash rate, exceeding 1,000 exahashes per second, signaling stronger security and broader mining participation. But behind this milestone lies a worsening crisis for miners: plunging profitability, mounting operational costs, and the largest miner sell-off since late 2024.

Bitcoin Hash Rate Reaches 1,000 EH/s Amid Falling Miner Revenue

In April 2025, Bitcoin’s hash rate surged past 1,000 EH/s (1 ZH/s), a significant indicator of network security and mining competition. This level of computing power demonstrates enhanced miner efficiency and technological growth. Yet, miners are grappling with financial distress that tells a very different story than the booming hash metrics suggest.

According to Cloverpool data, this record-setting hash rate comes at a cost. Mining revenue dropped nearly 40% year-over-year, from $2 billion in March 2024 to just $1.2 billion in March 2025. The April 2024 Bitcoin halving slashed rewards from 6.25 to 3.125 BTC per block, making transaction fees critical. However, persistently low fees and empty blocks have left miners with fewer incentives and tighter margins.

Miner Sell-Offs Signal Cash Flow Issues Across Sector

The financial pressure has already led to significant Bitcoin liquidations. Data from TheMinerMag shows that in March 2025, public miners sold over 40% of their monthly BTC production—the highest sell-off rate since October 2024. Firms like HIVE, Bitfarms, and Ionic Digital reportedly sold more Bitcoin than they mined to sustain operations.

This marks a dramatic shift from the post-halving accumulation strategies that miners usually adopt, and it has had a direct effect on the market price. Bitcoin dropped 2.3% in March, adding to the 17.39% correction seen in February. The continuous release of miner reserves into the market exerts downward price pressure, potentially compounding bearish sentiment.

Tariffs and Equipment Costs Further Squeeze U.S. Miners

U.S.-based miners are facing a unique set of challenges as trade tariffs on mining hardware take effect. Introduced under the Trump administration, these tariffs raise the cost of importing mining equipment from abroad. Analysts at BullifyX estimate that these tariffs will significantly increase operational costs and delay hardware upgrades for many miners.

This rising cost structure, combined with declining mining rewards and network congestion, could push some smaller operations to shut down or consolidate. As competition intensifies, only the most efficient and well-capitalized miners may survive the current squeeze on Bitcoin mining profitability.

Conclusion

Bitcoin’s surge in hash rate past 1,000 EH/s is a testament to its network strength, but miners are facing one of their toughest environments yet. Between halving-related revenue drops, inflated equipment costs, and aggressive sell-offs, the road ahead for Bitcoin miners is filled with pressure. With profitability down 40% and operational risks rising, miners will need innovative strategies—or substantial capital—to endure the coming months.

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