Bitcoin hashrate has once again exceeded 1 zettahash per second. After disruptions caused by cold weather in the US, the network has returned to normal operation. However, profitability remains near historic lows—less than $30 per PH/s per day.
The combination of high difficulty and weak fees increases pressure on margins.
Profitability at Cycle Lows
On February 24, the hashprice dropped below $28 per PH/s. As of March 1, it is around $29 according to Hashrate Index. This means that miners are earning less for the same computing power than in previous periods.
At the current BTC rate, spot price is the main contributor to revenue. Fees hardly contribute to income. Over the past day, their share was only 0.47% of the total block reward. In conditions of weak on-chain activity, this factor becomes critical.
Difficulty Continues to Rise
The hashrate has stayed above 1 ZH/s since the middle of last month. The network is now operating at about 1,085 EH/s. The average block interval is 9 minutes and 48 seconds.
Accelerated blocks caused a 14.73% increase in difficulty. This is the largest increase since 2021. The next adjustment is expected on March 5 and, according to preliminary estimates, will also be positive. The higher the difficulty, the more expensive it is to mine each block. At the current hashprice, this further squeezes profits.
Pressure on Weak Players
Low profitability combined with high difficulty creates tough conditions. Companies with high electricity costs are at the greatest risk.
Large operators with access to cheap electricity and modern equipment remain in a winning position. Scale and efficiency become key advantages.
The market is gradually shifting to a model where survival depends on operational discipline.
What Could Change the Situation
To improve margins, either the price of bitcoin must rise or transaction activity must recover. So far, neither factor shows a sustained reversal.
If the price continues to move in a narrow range and fees remain minimal, some less efficient capacity may be shut down. This will slow hashrate growth and stabilize difficulty.
However, the network is still demonstrating resilience. Even with profitability below $30 per PH/s, miners are maintaining power above 1 ZH/s.
What's Next?
The industry is entering a period of low profitability. Profitability remains squeezed, difficulty is near peak levels, and fees hardly support revenue.
Until the price recovers, the market will test operators' resilience. In these conditions, scale, efficiency, and access to cheap energy sources become advantages.
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