Bitcoin Mining Firms Face Q1 Profit Squeeze Amid Falling Hashprice and Rising Tariffs: CoinShares
Bitcoin miners may post underwhelming first-quarter results as profitability continues to be squeezed by a declining hashprice and mounting trade tariffs, according to a Friday blog post from digital asset manager CoinShares.
Analysts led by James Butterfill noted that second-quarter earnings could face further strain, citing tariffs on imported mining equipment ranging from 24% for Malaysia to as high as 54% for China. These elevated costs are especially burdensome for miners relying on older or less energy-efficient machines.
Core Scientific (CORZ) appears better positioned, with the company pivoting toward high-performance computing (HPC) to diversify revenue. Meanwhile, Bitdeer (BTDR), which manufactures its own mining rigs, could see tighter margins on overseas sales due to tariff exposure.
CoinShares projects that the total Bitcoin network hashrate could hit 1 zettahash per second (ZH/s) by July and potentially double to 2 ZH/s by early 2027. Despite the rising computational power, the outlook for hashprice — the revenue earned per unit of processing power — remains subdued.
According to CoinShares’ internal models, the hashprice is expected to decline gradually, staying in a narrow band of $35 to $50 per petahash per day (PH/day) through the next halving cycle projected in 2028.
In a separate note earlier this month, asset manager Grayscale suggested that geopolitical trade pressures — including tariffs — could ultimately bolster Bitcoin adoption as investors seek alternatives to traditional financial systems.
