Bitcoin Mining Costs Worsen as Crypto Trades Below Production Cost

JPMorgan analysts have observed that the cost of mining Bitcoin has worsened in 2026, with the cryptocurrency trading below its estimated production cost for five consecutive months.

The all-in production cost of Bitcoin is approximately $78,000, derived from electricity, hardware depreciation, and overhead expenses across public miners. However, at the current spot price of around $63,000, this creates a significant gap between the spot price and breakeven point for many miners.

This has led to a sustained squeeze on the sector, with publicly listed operators selling a record volume of coins in Q1 2026 to fund operating expenses. In fact, these companies collectively sold over 32,000 Bitcoin in Q1 2026 alone, surpassing their total sales for all of 2025 and setting a new quarterly record.

The financial strain has pushed many miners to the edge, with approximately 20% of the global mining industry operating at a loss. This is reflected in the Hashprice metric, which captures mining revenue per unit of computing power and currently stands at around $33 per petahash per second per day.