Bitcoin Mining Rigs Shutting Down: Network Computing Power Drops 21%

The nearly 50% drop in hashprice—a key revenue indicator for Bitcoin miners—and a 21% decline in the network’s total computing power reveal why companies pivoting toward Artificial Intelligence and High-Performance Computing (AI/HPC) are leading the pack; meanwhile, it is noted that mining could see a resurgence if Bitcoin returns to $126,000.

According to reports from CoinDesk, hashprice refers to the expected daily revenue of a single unit of mining power. This indicator, which fell from $63 to $31.80 since July of last year, shows that miners are generating less revenue with the same equipment. This revenue pressure, coupled with the bear market, is forcing high-cost producers to shut down their machines.

This process is referred to as “capitulation” in the mining industry. Hashrate, which measures the mining power of the Bitcoin network, has fallen from 1.14 ZH/s to 900 EH/s. This 21% drop stands out as one of the longest capitulation cycles on record. Market performance confirms this divergence: WULF, IREN, and CIFR stocks have more than doubled in value over the past year, while MARA, which has lagged in its transition to AI, saw its shares drop 40%.

AI/HPC Contracts Put Miners in the Spotlight

According to CoinShares’ first-quarter report, miners with AI/HPC contracts are trading at a 12.3x multiple. For companies focused solely on Bitcoin mining, this ratio remains at 5.9x. According to the report, the sector accumulated a total of $70 billion in contracts by the end of the quarter.

Riot Platforms’ 20-year, $9.1 billion lease agreement with Anthropic became one of the most striking examples of this transformation. Despite this, a return of Bitcoin to $126,000 could raise hashprice to approximately $59, potentially restoring the economics for companies focused exclusively on mining.