Bitcoin Hashrate Hits All-Time High: Are Bitcoin Miners Dumping to Stay Afloat?

Bitcoin Bitcoin Mining Market

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Hassan Shittu

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Hassan Shittu

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Hassan, a Cryptonews.com journalist with 6+ years of experience in Web3 journalism, brings deep knowledge across Crypto, Web3 Gaming, NFTs, and Play-to-Earn sectors. His work has appeared in...

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April 16, 2025

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Following the last halving, on April 5, Bitcoin’s hashrate reached a historic milestone of 1 sextillion hashes per second, according to BitInfoCharts.

March 2025 saw a sharp 50% decline in miner revenue compared to March 2024, with total earnings falling to approximately $1.2 billion, according to data from Newhedge.

The bulk of miners’ income comes from two sources: block subsidies and transaction fees.

With the recent halving, which has slashed the block reward to 3.125 BTC, miners are relying more heavily on transaction fees.

But those fees remain low, many blocks are still being mined with little to no transaction activity, leaving miners caught in a revenue crunch.

Amid these economic pressures, the behavior of miners has undergone a dramatic shift.

At the time of writing, the hashprice stands at just $44.20 per petahash per second (PH/s), down more than 11% since March 5.

With mining difficulty recently jumping 6.81% to an all-time high of 121.51 trillion, miners are now competing in an increasingly unforgiving environment.

The Halving Squeeze — Why Miners Are Selling More BTC Than Ever

Bitcoin miners have historically adhered to a HODL strategy, relying on future price appreciation to enhance the value of their holdings.

However, following the April halving, which reduced block rewards from 6.25 to 3.125 BTC, miners now find themselves in a financially tight situation.

TheMinerMag’s latest report paints a sobering picture: in March alone, 15 public mining firms liquidated over 40% of their freshly minted Bitcoin.

This is a significant reversal from the accumulation strategies seen in late 2024, when Bitcoin surged past $70,000 following the U.S. elections.

Back then, companies like Riot, Hut 8, and Marathon (MARA) were aggressively buying Bitcoin. That rally, however, has since lost steam, with BTC retreating nearly 20% from its highs.

Moreover, the report reveals that some companies are selling more than they produce. HIVE, Bitfarms, and Ionic Digital all exceeded 100% of their March production sales, effectively depleting parts of their existing reserves.

The move resulted from the financial pressure miners face as they strive to cover operational expenses, repay loans, and invest in infrastructure upgrades.

The Meaning Behind the Hashrate Boom and What Comes Next

Despite these financial headwinds, the Bitcoin network has never been more secure.

On April 15, Bitcoin’s hashrate briefly hit an all-time high of 883 EH/s (or 0.883 zettahash), just shy of the 1 ZH/s threshold that many analysts believe could be reached later this year.

This record-setting performance coincides with a 6.81% rise in mining difficulty, further increasing the cost of participation.

Despite that surge in hashrate, miners are racing to maximize rewards before the halving effects fully take effect, and many believe that Bitcoin’s scarcity post-halving could fuel future price spikes.

This bullish outlook is prompting firms to bring more hash power online despite the short-term pain.

However, despite these difficulties, market sentiment reflects this split reality. Bitcoin briefly surged to $86,000 on April 15 before pulling back to the $84,000 range.

Meanwhile, social media sentiment is turning bullish, with Santiment reporting a sentiment score of 1.973, up from previous neutral levels.

Analysts like Markus Thielen of 10x Research, however, warn that Bitcoin could be entering a period of extended consolidation despite the enthusiasm.

In the midst of this, prominent voices like Samson Mow and Titan of Crypto continue to call for higher highs.

Mow’s firm, JAN3, believes that $500,000 BTC is “not crazy” in a world with ETFs, sovereign reserves, and macroeconomic tailwinds.

However, for miners on the front lines, the current environment is one of survival, where record-setting hashrates mask a deeper struggle for profitability following the halving.