Key Notes
Bitcoin’s hash rate surpasses 1,000 EH/s, reaching a major milestone again.
- Miner revenue fell 40% year-over-year, increasing financial stress.
- Public miners sold 40% of their Bitcoin production in March 2025, adding price pressure.
- Rising tariffs on mining equipment further squeeze miner profitability.
Bitcoin’s Hash Rate Breaks New Records
Bitcoin’s network reached another historic milestone, with its hash rate crossing 1,000 exahashes per second (EH/s) again, equivalent to 1 Zetahash/sec according to data from Cloverpool.
The Bitcoin hash rate measures how many guesses miners make every second to secure the network, with 1 exahash equaling 1 quintillion guesses per second.
Bitcoin’s hash rate briefly crossed this mark for the first time in late March 2025, but the latest surge in mid-April marks a more sustained breakthrough, highlighting growing miner participation and technological advancements. This record suggests higher security and greater decentralization, reinforcing long-term network strength.
Financial Struggles Deepen for Miners
However, this network strength comes during a difficult period for Bitcoin miners.
According to Newhedge data, Bitcoin miner revenue plunged nearly 40% year-over-year, dropping from $2 billion in March 2024 to just $1.2 billion in March 2025.
Several factors affecting miners’ profitability include –
- The Bitcoin halving in April 2024 cut block rewards by 50%, reducing earnings from 6.25 BTC to 3.125 BTC per block.
- Transaction fees remain relatively low, and many blocks are still partially empty, limiting the amount of additional income miners can earn beyond block rewards.
Rising Miner Sell-Offs Add Market Pressure
With rising costs and lower revenues, miners have started selling more of their Bitcoin reserves.
According to The MinerMag, publicly traded mining companies sold over 40% of their Bitcoin production in March 2025, the highest sell-off rate since October 2024. Companies like HIVE, Bitfarms, and Ionic Digital sold more BTC than they mined during the month.
This wave of selling has created direct downward pressure on Bitcoin’s price. Bitcoin’s price fell 2.3% in March, following a sharper 17.39% correction in February.
This matters because miners are major Bitcoin holders. Large-scale sell-offs increase the available supply on the market, which can weigh on BTC prices, especially during periods when demand remains soft.
External Factors: U.S. Tariffs Add More Pressure
On top of internal challenges, U.S.-based miners face rising costs due to tariffs on mining equipment. These tariffs, introduced during the Trump administration, have made importing critical hardware more expensive, further squeezing miners’ already thin profit margins.
This additional financial strain could lead to more miner shutdowns, further Bitcoin sell-offs, and greater short-term volatility in Bitcoin’s price.
Market Outlook: Short-Term Risk, Long-Term Strength?
For traders and investors, Bitcoin’s current situation sends a mixed signal.
In the short term, miner sell-offs may continue creating downward price pressure, while ongoing financial stress could trigger further reserve liquidations.
Over the long term, however, a record-high hash rate reflects a stronger and more resilient Bitcoin network. Bitcoin’s long-term fundamentals could strengthen and support future price recovery.
