Bitcoin mining is experiencing its worst crisis in 15 years!

The flagship crypto is showing all its colors to its miners. And not in a good way. In November, while the price of bitcoin slid like a sled on an icy slope, the machines kept running… at a loss. From CleanSpark to Bitfarms, even the heavyweights of the crypto industry are gritting their teeth. Between a depressed market, an approaching halving, and worried investors, the atmosphere in mining farms is anything but serene. Let’s take stock.

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 Miner Mag

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.

The Miner Mag

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.