Bitcoin Miners Face Double Blow from Rising Difficulty and Trump Tariff Threats

Hashprice slips below breakeven levels as pressure mounts on miners, study shows

The Bitcoin mining industry is under intensifying stress as rising network difficulty and political uncertainty combine to weigh on profitability, according to a new report from TheMinerMag.com, compiled by analyst Wolfie Zhao.

In early April, the hashprice—the revenue earned per petahash per second—briefly dropped below $40, marking a sharp decline from the $45–$50 range maintained throughout March. This threshold is considered the breakeven point even for publicly traded mining firms, suggesting mounting pressure for consolidation across the sector.

Rising difficulty, declining fees

The report points to two consecutive 1.43% increases in mining difficulty during March, followed by a sharp 6.81% jump in April. These increases have coincided with falling transaction fees, which now account for less than 1.2% of miners’ total block rewards. Zhao notes that weaker transaction revenues, combined with elevated energy costs, have pushed the average cost per petahash to around $34 for publicly listed miners.

Miners liquidate holdings as revenues shrink

Despite the challenges, some firms are outperforming the broader market. Bitfarms and Hut 8 reported realized hashrate gains of 16% and 80%, respectively, while Marathon Digital (MARA) remains the only publicly traded miner with over 40 exahash in capacity.

Nonetheless, sector-wide stress is evident. Zhao’s research reveals that listed miners sold off 42% of their Bitcoin production in March—the highest liquidation rate since October. Notably, CleanSpark has shifted from a full “HODL” strategy to active asset sales to maintain cash flow.

Tariff tensions add to miner concerns

Investor sentiment has further deteriorated amid former President Donald Trump’s proposed tariffs, which threaten to disrupt ASIC supply chains—crucial hardware for mining operations. Zhao's price-to-hash ratio analysis shows the figure has dropped to approximately $50 per terahash, down nearly 50% from post-election highs, with the total market capitalization of listed miners falling below $20 billion.

The report concludes that unless hashprices recover significantly, even the most efficient mining operations could struggle, especially with new tariff-related uncertainties. Smaller, privately held miners, in particular, may face forced exits from the market.