Bitcoin Miners Face Mass Shutdowns Amid Profitability Crisis in 2026

In a stark sign of the ongoing turmoil in the cryptocurrency market, major Bitcoin miners are increasingly unplugging their equipment as profitability hits rock bottom. This trend, highlighted by recent actions from companies like Cango, underscores the severe pressures facing the industry amid plummeting Bitcoin prices and soaring energy costs.

According to industry reports, Cango, a prominent mining firm, has unplugged approximately 30% of its Bitcoin hashrate capacity due to the persistent slump in hashprice, a key metric measuring mining revenue per unit of computing power. This move comes as Bitcoin's value has cratered, trading around $78,000 after a sharp decline from its 2025 peaks, making the energy-intensive process of mining increasingly uneconomical.

The broader mining sector is feeling the pinch. Data from Luxor Technology shows the hashprice index has plunged to a record low of about 3 cents per terahash, far below levels seen in previous cycles. Analysts estimate the average cost to mine one Bitcoin now stands at around $87,000, significantly higher than current market prices, forcing operators into the red. In response, large-scale outfits are shutting down rigs en masse, with Bitcoin's network hashrate dropping 18% from its all-time high, as noted in recent discussions on X.

This capitulation isn't isolated. Firms like Core Scientific (CORZ), Bitfarms (BITF), and Marathon Digital (MARA) have seen their stock prices tumble, with some pivoting away from pure Bitcoin mining toward more lucrative ventures like AI and high-performance computing (HPC). For instance, companies such as TeraWulf and CleanSpark are repurposing data centers for AI workloads, where revenue per megawatt can reach $9 million annually,dwarfing traditional mining margins. This shift is driven by a valuation gap: Bitcoin miners trade at about $4.5 million per MW, compared to over $30 million for data center stocks.

Network adjustments are providing some relief. Bitcoin's mining difficulty recently dipped for the first time in 2026, falling to 146.4 trillion, with further reductions projected,potentially up to 14% in upcoming retargets. This could ease conditions for remaining miners, but experts warn that sustained low prices might lead to more exits. Historical precedents suggest miner capitulations often precede rallies; after the 2021 China ban, hashrate halved before Bitcoin surged to new highs.

Adding to the strain, miners are offloading Bitcoin holdings to cover costs. Leading players like MARA have sold portions of their reserves amid the plunge, raising concerns about liquidity and debt servicing. Daily miner revenues have hit lows of $28 million, exacerbated by external factors like U.S. tariffs and winter storms that spiked energy prices.Looking ahead, the industry appears to be bifurcating: pure miners versus those evolving into energy and compute infrastructure providers. As one X user put it,

"Pure Bitcoin mining in 2026 is brutal... That’s exactly why every major miner is racing to pivot into AI/HPC - margins 5-10x better."

This development, rooted in the user's shared insight on declining profitability, highlights the adaptive nature of the sector. While short-term pain is evident, historical patterns suggest potential for recovery as inefficient players exit and the network stabilizes.