The Profitability Cliff
The bitcoin mining industry is facing a severe profitability squeeze this week as a combination of falling cryptocurrency prices and high network difficulty forces several mining rigs into the red. According to the latest data from Antpool, current market conditions have pushed multiple hardware models past their “shutdown price.”
Based on a standard electricity cost of $0.08 per kilowatt-hour, the data reveals a grim landscape for older and mid-range hardware. According to Antpool, once-dominant models including the Antminer S19 XP+ Hydro, Whatsminer M60S and Avalon A1466I have become unprofitable to operate.
The plunge in profitability was triggered as bitcoin tapped a multi-month low of just over $74,500 on Feb. 2. While the digital asset has since staged a modest recovery to consolidate, the damage to the balance sheets of smaller operations is evident. This latest dip marks a significant cooling period for the market, with bitcoin now down by over 10% since the start of the year.
Bearish Outlook Persists
While some traders are looking for a “bounce” at current levels, market sentiment remains fragile. A growing chorus of analysts suggests that this may not be the floor; some projections indicate the downtrend could persist, with the potential for bitcoin to test the psychological $50,000 threshold.
Meanwhile, pressure is mounting for more modern hardware. The Antminer S21 series—including the S21, S21+ and S21 Hyd.—is teetering on the edge of viability. With bitcoin trading near the $75,000 mark as of Feb. 3, 2026 at 6 p.m. EST, these machines are approaching a critical shutdown range of $69,000 to $74,000.
“The miner profit and loss sustainability index has dropped to its lowest reading in 14 months,” noted a recent report from Cryptoquant, which said miners are currently “extremely underpaid” for the computing power they provide to the network.
While many operators are considering “unplugging,” the latest generation of high-performance hardware remains comfortably in the black. The Antminer U3S23H and Antminer S23 Hydro, part of Bitmain’s flagship series that began shipping earlier this year, boast significantly lower shutdown prices estimated to be above $44,000. These high-hashrate units are currently the only models seeing healthy daily returns due to their superior energy efficiency.
The crisis comes at a difficult time for the industry. A recent severe winter storm across North America has already forced several large-scale miners to curtail operations to protect power grids. Furthermore, while the bitcoin network difficulty saw a slight 1% decrease in early 2026 to 146.4 trillion, it remains near historic highs.
As bitcoin continues to trade well below its October 2025 highs, the industry is watching closely to see if a further price slide will trigger a mass exodus of hashrate, which could eventually lead to a downward adjustment in network difficulty.
FAQ 💡
- Why are miners struggling now? Falling bitcoin prices and high network difficulty have pushed many rigs below their shutdown thresholds.
- Which hardware is most affected? Older and mid-range models like Antminer S19 XP+ Hyd, Whatsminer M60S, and Avalon A1466I are now unprofitable.
- Are any rigs still profitable? Yes, newer high-efficiency units such as the Antminer U3S23H and S23 Hyd remain viable with shutdown prices near $44,000.
- What’s the outlook for miners? Analysts warn bitcoin could test $50,000, risking further shutdowns and potential hashrate declines.
