$BTC

The Harsh Reality of Bitcoin Mining in 2026: Are All Firms Headed for Default?

Hey folks, let's talk about the real deal with Bitcoin mining. It's not the gold rush everyone hyped it up to be. Sure, back in the day, it sounded like easy money—plug in some ASICs, solve puzzles, rake in BTC. But fast-forward to 2026, and the industry's on life support.

First off, the basics: Mining rewards halved in 2024 (down to 3.125 BTC per block), and with Bitcoin's price tanking over 35% in 2025 (from a high of $126K to around $80K by year-end), profitability is at rock bottom. Daily revenue per exahash hit record lows in December 2025, with gross profits scraping by at just $17K per EH and margins around 44%. Energy costs? Sky-high. Hashrate's been dropping for months as miners shut down rigs or pivot to AI data centers to stay afloat.

Remember the bankruptcies? Core Scientific filed Chapter 11 in 2022 after massive losses, owing $1.3B. Compute North went belly-up the same year with $500M in debts. And that was during the last bear market. Now, in 2025-2026, the sector's facing more pain: Layoffs at crypto firms like OKX and MANTRA, shutdowns like NGS Crypto, and ongoing slumps. Even big players are hurting—mining stocks dipped 18% in December 2025 alone.

The ugly truth? If BTC prices keep sliding (and analysts warn of more downside), all these mining firms could soon default. Overleveraged ops, massive debts from expansion (total industry debt $2-4B), and shrinking revenues mean consolidation or bust. Vulnerable ones are already teetering—expect a wave of bankruptcies like we saw post-2022 crash. Pivoting to AI might save a few, but for most? Game over.

Don't get sucked in—mining's a trap for the unprepared. What's your take? DYOR before you plug in. #BitcoinMining #CryptoReality #BTC