Bitcoin Miners Turn Green To Survive Economic Squeeze

As the Bitcoin network crosses the zetahash threshold, the profitability of mining companies collapses. The hash price has fallen below 40 dollars per PH/s/day, a critical level that threatens the viability of many players. Faced with this paradox, companies in the sector are redirecting their strategies towards renewable energies. However, behind the ecological argument, it is an economic survival logic that dominates, revealing a profound transformation of the mining energy model.

The Hash Price Below the Profitability Threshold

While it takes 1200 days to break even on a machine, “the hash price has fallen to approximately $39.4 per PH/s/day”, specifies Hashrate Index, highlighting a critical situation for the mining industry.

This level is below the estimated breakeven point for the majority of operators, set at 40 dollars. In clear terms, a large portion of mining companies today operate at a loss or on extremely compressed margins.

The phenomenon results from several converging factors : the recent reduction in mining rewards after the halving, combined with intensified competition, has mechanically eroded profits. The Bitcoin network, more secure than ever, has never been so energy-intensive.

Several structural elements contribute to this historic profitability decline :

• A continuous increase in hashrate, which crossed the symbolic zetahash mark (1,000 petahashes) last April, forcing mining specialists to invest more in computing power ;

• A reduction in rewards following the last halving, mechanically decreasing revenue per block ;

• Sharp increases in energy costs, particularly in some regions where cheap electricity is becoming scarce ;

• Growing competitive pressure, which pushes for permanent technological sophistication, with more expensive and energy-intensive equipment.

This combination of factors has led some operators to withdraw. In November, Tether officially ceased its mining operations in Uruguay, citing “the rise in energy costs” as the main reason. In this context, maintaining profitability becomes a balancing act.

The Green Turn of Mining : More Necessity Than Virtue

Facing this margin contraction, several players have initiated an accelerated transition towards renewable energy sources.

Sangha Renewables commissioned a 20-megawatt solar installation in Ector County, Texas. Meanwhile, Phoenix Group launched in November a 30 MW mining site powered by hydroelectricity in Ethiopia. This momentum fits into a general movement where green energy becomes a lever for economic survival, much more than an ethical choice.

Some players are also exploring innovative technological solutions to optimize their energy consumption. The hardware manufacturer Canaan has thus announced the development of an adaptive ASIC, capable of adjusting its consumption via artificial intelligence algorithms.

At the same time, the company deployed a mining installation on a wind site in Texas, in partnership with Soluna, a specialized digital infrastructure company. These efforts reflect a desire to control costs over the long term, in a context where energy has become the most critical variable in the mining economic model.

Ultimately, this reconfiguration of the energy landscape could profoundly change the geography of mining. Regions with abundant renewable resources, especially East Africa, some areas of Texas, or Latin America might gain attractiveness, while jurisdictions with expensive energy risk losing operators.

While Bitcoin mining is experiencing its worst period in about fifteen years, the current pressure on margins acts as a catalyst for structural evolution, where only mining companies capable of combining technological innovation and strategic energy arbitrage will succeed.