Bitcoin Miners Cut Capacity Amid Rising Costs
Bitcoin miners are facing financial pressures as they struggle to maintain profitability amidst rising cash production costs. According to data from CoinShares, publicly traded Bitcoin miners collectively fell below the cash break-even level in the second quarter of 2026.
The average cash production cost for Bitcoin miners rose to $75,500, while Bitcoin's price at the end of the quarter remained at $58,400. This has led to a significant reduction in capacity among miners, with some companies canceling hardware orders and ceasing operations altogether.
Core Scientific, for example, paid $41.9 million to cancel next-generation mining hardware that would have provided approximately 15 EH/s of computing power. Other publicly traded miners have also begun downsizing their operations due to revenue pressure.
The varying costs among companies are striking, with cash costs per Bitcoin ranging from $45,361 for ABTC to $216,783 for CIFR and $174,727 for WULF. These costs include income tax but do not account for depreciation and stock-based payments.