Bitcoin Hashrate Drops Nearly 20% Amid Extreme U.S. Weather

Severe U.S. winter storms caused Bitcoin’s deepest hashrate drop since 2021, with miner revenue and output plunging as CryptoQuant’s profitability index hit its lowest since November 2024.

BTC

Summary

Severe U.S. winter storms have caused Bitcoin’s total network hashrate to drop about 12% since November 11—its largest single decline since 2021. Major mining firms temporarily shut down operations, driving daily Bitcoin mining revenue down from roughly $45 million to a yearly low of $28 million in two days, before recovering slightly to about $34 million. Publicly traded miners saw output plunge from 77 to 28 BTC per day, while non-public miners’ production fell from 403 to 209 BTC. CryptoQuant’s Miner Profit and Loss Sustainability Index fell to 21, its lowest level since November 2024, indicating severe financial stress despite recent difficulty reductions.

Terms & Concepts
  • Hashrate: The total computational power used to secure and process transactions on the Bitcoin network.
  • Miner Profit and Loss Sustainability Index: A CryptoQuant metric measuring miner economic health by comparing revenue and costs, with lower readings indicating greater financial stress.
  • Bitcoin mining: The process of validating Bitcoin transactions and securing the network by solving cryptographic puzzles, rewarded in Bitcoin.