Bitcoin miners are entering one of the toughest periods in recent years. While the total computing power of the Bitcoin network continues to climb — reaching an all-time high of 1.16 ZH/s in October — the price of bitcoin weakened throughout the fall. This combination, more miners competing for a smaller reward, has significantly reduced profitability across the industry, according to a new report from The Miner Mag.

Record network performance and weaker bitcoin price

Hashrate, the total computing power dedicated to securing the Bitcoin network, indicates competitive pressure among miners. The higher it climbs, the more machines worldwide race to solve cryptographic tasks and earn a block reward. Although a high hashrate signals a strong network, it also drives up costs and reduces individual miner payouts.

By late October, the price of bitcoin had dropped toward $81,000, amplifying the pressure. Together, these factors have sharply reduced miners’ income.

Hashprice at lows and machine ROI above three years

Hashprice shows how much a miner earns per unit of computing power. When bitcoin prices fall or competition rises, hashprice declines. According to the report, it dipped below $35, while public mining firms report an average closer to $45. For smaller operators, that’s near break-even.

Mining hardware ROI is stretching, too. Investments that once paid off within two years are now exceeding 1,200 days — more than three years. With higher interest rates and rising financing costs, upgrading mining farms is becoming difficult for many companies.

Rising debt and the push into AI

Squeezed margins are driving miners toward higher leverage. The past quarter saw a wave of nearly interest-free convertible bonds — financing that can later convert into equity.

Meanwhile, miners are increasingly trying to monetize their data centers by offering AI-related services and HPC (high performance computing). So far, revenue from these services is too small to offset declining bitcoin mining income.

A surprising rally in mining stocks

Despite worsening economics, shares of major miners surged over the past 24 hours. CleanSpark, Cipher Mining, and IREN all reported double-digit gains.

The rally was sparked by a J.P. Morgan report raising target prices for these companies. Analysts highlighted Cipher’s roughly 45% drop from its peak, suggesting attractive upside, and noted its strong positioning for new long-term HPC contracts.

Another catalyst was IREN’s newly announced agreement with Microsoft: a five-year, $9.7 billion deal to provide computing power for cloud services using Nvidia GB300 GPUs. It is one of the largest deals of its kind and a clear signal that mining firms can become major players beyond the crypto sector. Analysts remain cautious on Marathon Digital and Riot, citing softer bitcoin prices and higher share dilution.

Sources:

https://theminermag.com/research/2025-11-24/bitcoin-mining-q3-2025

https://seekingalpha.com/news/4525339-jp-morgan-upgrades-cleanspark-cipher-mining

https://cointelegraph.com/news/iren-microsoft-ai-cloud-deal-bitcoin-miners-pivot