On the 19th of April, the Bitcoin mining difficulty had fallen to 135.59 trillion after a drop of 1.13% in the past 24 hours. In simple terms, the Bitcoin miners had to perform 135.59 trillion times more work than the original baseline (which was set at 1 back in 2009) to find a block.
Now, a drop in mining difficulty may look positive on the surface, as there is less competition, which is directly proportional to a surge in earning rewards. Additionally, strong miners take the lead as a drop in Bitcoin mining difficulty flushes out the weak miners.
Other side of the coin
However, on the contrary, a fall in Bitcoin difficulty also means a fall in Hashrate, which was at 1.063 ZH/s at the time of publishing.
This drop in turn means lower security, further resulting in miner capitulation. If the latter occurs, then Bitcoin’s price will drop, and many mining platforms might also face shutdowns.
However, it’s also important to note that the latter happens only when there is a sharp drop. With a modest drop of 1.13%, things might be healthy and just a short-term noise rather than a miner exit scenario.
Bitcoin miner revenue also faces the brunt
However, Bitcoin’s Daily Miner Revenue and Network Hashrate chart from CryptoQuant suggest that the situation in the miner space is concerning.
Revenue has fallen to between the $28 million and $35 million, whereas Hashrate is extremely volatile, surpassing previous highs. All in all, this means that mining is less profitable at the moment.
This happens at the back of Bitcoin trading at $75,404.11 at the time of publishing, after surging to $78,000 just 2 days ago. Taken together, this suggests that the drop in mining difficulty is having an impact on the overall market.
In fact, the operating margin analysis of different firms further sheds light on how big Bitcoin mining firms are profitable and smaller ones are facing stress.
What are the different operating margin percentages telling us?
As per CompaniesMarketCap data, IREN (Irsis Energy), which ranks as the largest Bitcoin mining firm by market cap, saw a surge of 18.66% in operating margins.
Whereas, firms like Bitfarms, which ranks 11th by market cap, saw a drop of over 41% in operating margins. Additionally, Riot Platforms saw a drop of 102.45%, whereas MARA Holdings witnessed a drop of 145.50%.
This comes on the heels of Q1 2026 witnessing over 32,000 $BTC being sold, with hashprice falling near $33/PH/s/day. Needless to say, lying below the $35 breakeven point, these metrics pushed approximately 20% of miners from profit to loss.
If looked at deeply, the present liquidation of 32K has outpaced the 20K $BTC sold during the 2022 Terra-Luna collapse.
Final Summary
- The drop in Bitcoin mining difficulty to 135.59 T at block 945,766 suggests that small miners are existing.
- Bitcoin price, too, faces selling pressure, with Bitcoin mining firms facing sharp declines in operating margin.
