Bitcoin mining has turned unprofitable, according to Checkonchain., 2026/03/23 11:14:24

In mid-March, the average cost of mining a single bitcoin rose to $88,000. With the market price hovering around $69,000, miners are reportedly facing an average loss of approximately 21%, according to analysts at Checkonchain.

Their analysis indicates that pressure on the sector has intensified amid escalating tensions between the United States and Israel on one side and Iran on the other. The increase in oil prices above $100 per barrel has resulted in higher electricity costs, a critical resource for mining.

Up to 8–10% of the global hash rate, reliant on energy supplies from the Middle East, is now at risk. The situation is exacerbated by the strong rhetoric from U.S. President Donald Trump and shipping restrictions through the Strait of Hormuz.

In light of rising expenses, mining companies are compelled to liquidate reserves, which adds further strain to the market. Major public players, including Marathon Digital and Cipher Mining, are accelerating their business diversification—redirecting some equipment towards artificial intelligence and high-performance computing tasks.

A recalibration of mining difficulty is anticipated in early April. Analysts estimate that the metric may continue to decline if the price of bitcoin does not rebound to levels that ensure mining profitability.

Should bitcoin remain below $88,000 without signs of recovery, the exodus of miners may increase, and the difficulty level could continue to decrease, Checkonchain noted.

Previously, the Chinese company Cango, one of the largest miners and involved in automobile sales, reported a net loss of $452.8 million for its first full year of bitcoin mining and has begun selling crypto assets.