Bitcoin Miners Face Renewed Financial Pressure as Hashprice Drops and Transaction Fees Dry Up

Bitcoin miners are facing renewed financial pressure as declining transaction fees and a hashprice drop push operational costs higher, according to TheMinerMag's February 2025 report.

Bitcoin miners are facing increasing financial pressure as transaction fees continue to decline and a hashprice drop pushes up operational costs, according to TheMinerMag’s February 2025 report.

Bitcoin’s hashrate, a measure of network participation, climbed 3.8% in February to 810 EH/s, indicating a slowdown in mining competition growth. However, the hashprice, or the revenue that miners earn per unit of computing power, slipped to $45/PH/s.

This wiped out gains from the U.S. election-driven price surge that pushed the hashprice above $50/PH/s in December 2024. At this level, some less-efficient miners at the margin are likely feeling the strain.

Transaction fees, which form a secondary income stream for miners, contributed just 1.3% to total block rewards in February, reaching their lowest share since the last bear market bottom in 2022. March is trending even lower, with an average of 1.12% so far.

These factors — alongside increased competition from artificial intelligence (AI) data centers for energy and capital at higher prices may add further pressure on bitcoin mining.

Those operators who rely on bulk hosting agreements and asset-light strategies appear to be bearing the brunt of the crypto winter.

Reporting a 6% increase in hashrate, MARA remains the industry leader with 44 EH/s. CleanSpark follows closely with a 12% rise to 39 EH/s.

Despite some firms like HIVE Digital and Cipher Mining selling a portion of their bitcoin output to fund expansion and new hardware purchases, total bitcoin holdings among miners surpassed 100,000 BTC for the first time.

However, March saw a downturn for mining stocks. The combined market capitalization of 15 major firms dropped from $36 billion in January to $22 billion.

Cipher, Canaan, Hut 8, HIVE, and Bitdeer all saw losses exceeding 40% as investors reacted to the macroeconomic climate and crypto price trends.

With network growth slowing and energy costs remaining elevated, sustained bitcoin price gains may be crucial for miners to avoid further financial stress.