Bitcoin Mining Stocks Drop Sharply as Revenue Falls Amid Market Turmoil

Key Points:

• Bitcoin mining stocks dropped by more than 10% on Monday due to rising competition and market volatility.

• U.S. tariffs and the ongoing trade conflict with China are increasing pressure on mining costs and profit margins.

• The Bitcoin network's computing power reached an all-time high, putting additional strain on miner revenues.

Bitcoin mining stocks are struggling alongside broader equity markets as competition hits record levels and traders panic-sell amid tariff-related uncertainties.

Most mining stocks saw declines of more than 10% on Monday, continuing the sell-off from the previous week. MARA Holdings (MARA) dropped nearly 11%, Riot Platforms (RIOT) fell around 8%, and CleanSpark (CLSK) slid 10% in early U.S. trading. Other crypto-related stocks, including Michael Saylor’s Strategy (MSTR) and the crypto exchange Coinbase (COIN), also saw losses of more than 10%.

The sell-off occurs as global traders panic-sell across various asset classes, with equities being hit the hardest. U.S. President Donald Trump's tariffs have increased market uncertainty, while the ongoing trade war with China has raised additional concerns for miners.

Chinese manufacturers currently dominate the market for the machines used by most miners to earn block rewards. If the tariffs remain in place, mining is likely to become more expensive for those already facing higher energy costs and lower profit margins due to the recent halving that cut their rewards in half.

Compounding the difficulty, the Bitcoin network's computing power — a key indicator of competition among miners — reached a new all-time high of 1 zettahash per second (1 ZH/s) on Friday, according to data from Glassnode. The previous record was set on January 31, when the network hit 975 exahashes per second (EH/s).

As competition intensified, the price of Bitcoin has dropped from a recent peak of over $109,000 to $77,000, further squeezing mining revenue. Hashprice, a metric that measures daily income in relation to hash power, has fallen to a record low of $42.40, putting even more pressure on miners.