Key Takeaways
- The network’s 30-day average computing power decreased from 1,066 EH/s to 1,004 EH/s between quarters.
- This 5.8% quarterly decline represents the most significant hashrate reduction observed in recent periods.
- Mining revenues collapsed as Bitcoin plummeted from $126,000 to $65,000, devastating profitability margins.
- Miner earnings hit an all-time low of approximately $27.89 per PH/s daily.
- Approximately 252 EH/s worth of mining infrastructure was decommissioned due to unsustainable economics.
The Bitcoin network experienced a significant reduction in total computing power during the opening quarter of 2026, revealing mounting challenges throughout the mining industry. Data compiled by Hashrate Index shows the network’s 30-day rolling average hashrate decreased to 1,004 exahashes per second during Q1 2026, compared to 1,066 EH/s recorded in the preceding quarter.
This represents a 5.8% sequential quarterly decline, making it the most substantial hashrate contraction witnessed in multiple quarters. The decrease coincided with a dramatic collapse in Bitcoin’s market value, which severely diminished mining revenues throughout major production areas worldwide.
Bitcoin’s price plunged from approximately $126,000 in October 2025 to roughly $65,000 by February 2026. This dramatic valuation collapse slashed mining revenues and forced less-capitalized operations into crisis mode. The downturn also triggered widespread reassessment of equipment deployment strategies and capacity expansion plans.
Global hashrate dropped to 1,004 EH/s in Q2 2026, down -5.8% QoQ.
The cause is profitability.
Bitcoin fell ~50% from its $124K peak → hashprice hit an all-time low of ~$27.89/PH/s/day → 252 EH/s of legacy hardware went offline.https://t.co/0Ln8YuZAXF pic.twitter.com/Lk6nbInkYg
— Hashrate Index 🟧⛏️ (@hashrateindex) April 6, 2026
The hashprice metric, which measures potential mining revenue, plummeted to an unprecedented low of approximately $27.89 per petahash per second daily. This indicator demonstrates the revenue miners can generate from their computational resources. The record-low figure illustrates the severity of profitability deterioration experienced over recent months.
Legacy equipment forced offline as economics deteriorate
Mining operations have confronted compressed profit margins as revenues have contracted while operational expenses remained persistent. Equipment operating above approximately 25 joules per terahash now generates negative returns in most scenarios. This reality has made maintaining older hardware economically untenable.
Consequently, numerous operators have powered down their least efficient machines to minimize financial hemorrhaging. Industry analysis suggests roughly 252 EH/s of network capacity currently sits idle. A substantial portion of this deactivated capacity appears permanently retired.
These widespread shutdowns exemplify a recurring pattern within Bitcoin mining operations. Network participation typically expands during bullish price environments and contracts when economic margins compress. During this particular downcycle, the primary stress factors originated from market dynamics rather than external regulatory interventions.
Nevertheless, Bitcoin’s underlying protocol continues its automatic calibration to fluctuating network participation. Early April 2026 saw mining difficulty increase by approximately 4%. This followed a prior adjustment period that witnessed an 8% difficulty reduction.
US maintains dominance as hashrate distribution remains centralized
The worldwide allocation of Bitcoin mining capacity experienced minimal shifts throughout this period. The United States preserved its position as the dominant mining jurisdiction, commanding 37.4% of total network hashrate. This translates to approximately 375 EH/s.
American market share declined marginally as certain operators decommissioned equipment and redirected resources toward artificial intelligence computing infrastructure. Russia held second position with 16.9% of global capacity. China secured third place, controlling approximately 12% of worldwide hashrate.
Chinese mining capacity contracted following enforcement measures in Xinjiang during December 2025 that curtailed portions of regional mining operations. Nevertheless, these three nations collectively control nearly 65% of aggregate Bitcoin hashrate. This concentration demonstrates the network’s continued dependence on a narrow set of geographical jurisdictions.
According to Hashrate Index, geographical distribution shifts correlated more strongly with mining profitability factors than geopolitical tensions. The analysis also identified progressive diversification occurring in certain market segments. This trend became increasingly apparent in jurisdictions beyond the top three producers.
Emerging jurisdictions surge while established players contract
Multiple secondary mining territories demonstrated impressive expansion throughout the previous twelve months. Kyrgyzstan achieved 300% annual expansion and 167% sequential quarterly growth. This surge followed implementation of transparent regulatory frameworks during mid-2025.
Paraguay similarly demonstrated robust growth, expanding 54% year-over-year and capturing 4.3% of worldwide hashrate. Both Laos and Finland successfully doubled their mining capacity compared to the prior year. Their expansion benefited from favorable energy availability and supportive local operational environments.
Ethiopia emerged among leading producers with 2.5% of total network hashrate, achieving eighth position globally. Growth persisted despite a moratorium on new licensing implemented during mid-2025. Previously authorized operations received permission to proceed.
Several countries experienced the opposite trajectory. Iran shed approximately 7 EH/s during the quarter amid persistent regional instability. Argentina’s hashrate plummeted 42% annually as macroeconomic challenges intensified.
Brazil demonstrated 133% annual expansion, reaching 3.5 EH/s total capacity. However, analysts noted that upcoming quarters will determine sustainability of this growth trajectory. Collectively, the data reveals a mining ecosystem reacting swiftly to price volatility, equipment economics, and jurisdictional operating environments.
