Bitcoin mining difficulty dropped 7.76% to 133.79 trillion during the latest biweekly adjustment on Saturday. This decline follows block height 941,472 and marks the second-largest negative adjustment recorded in 2026. The network experienced average block times of roughly 12 minutes and 36 seconds, triggering the automatic downward recalibration.
Data from CloverPool and CoinWarz confirms the adjustment, which trails only the 11.16% plunge observed on Feb. 7. That previous decline represented the steepest drop since China implemented its sweeping mining ban in 2021. The current difficulty sits roughly 10% below the 148 trillion level where the year began.
Market conditions contributed significantly to this shift as Bitcoin traded near $70,370 on Saturday according to The Block. Checkonchain previously reported an average production cost of roughly $87,000 per coin in early February. JPMorgan analysts estimated that network production costs fell to $77,000 as high-cost operators exited the market. Even that lower figure remains above spot prices.
Hashprice, the metric tracking expected miner revenue per unit of computing power, hovers around $33.30 per petahash per second per day. Luxor's Hashrate Index indicates this level sits at or below breakeven for a wide range of mining hardware. This economic pressure forced many operators to shut down less efficient machines during the recent volatility. The metric hit an all-time low of about $28/PH/s/day on Feb. 23.
The difficulty decline reflects a structural shift beyond typical cyclical price pressure affecting the network. A growing number of publicly traded miners are actively reallocating infrastructure from Bitcoin mining toward artificial intelligence workloads. Core Scientific stated it expects to sell the majority of its Bitcoin treasury in 2026 to fund expansion. The Block's 2026 Mining Outlook warned this could gradually reduce network hashpower.
Bitdeer fully liquidated its Bitcoin reserves to zero in February, becoming the largest publicly traded miner by self-mining hashrate to hold no BTC. Cango, Riot Platforms, TeraWulf, IREN, CleanSpark, and Bitfarms have all outlined similar diversification strategies in recent quarters. HIVE Digital Technologies launched its first AI GPU cluster in Paraguay just days ago. As of its March 21 weekly update, Bitdeer's holdings remained at zero.
Matthew Sigel, VanEck's Head of Digital Asset Research, noted that miners are sitting on a gold mine regarding their secured power capacity. He suggested this value presents significant opportunities for AI applications and high-performance computing. The pattern emerging in 2026 suggests a fundamental change in how mining companies operate. Sigel made these comments earlier this month.
Transaction fees as a share of total miner revenue collapsed from roughly 7% in 2024 to about 1% according to The Block's 2026 outlook. This leaves miners almost entirely dependent on the block subsidy and, by extension, on Bitcoin's price. Such reliance increases vulnerability during periods of price stagnation or decline. The 2026 outlook noted this trend clearly.
A VanEck report published Thursday found that miner selling pressure has remained steady rather than intensifying despite tightened economics. Aggregate miner balances stood at roughly 684,000 BTC, down only 0.5% year-over-year. The report noted miners have effectively sold the entirety of newly issued supply over that period. Long-term holder selling has slowed, according to the analysis.
History offers some comfort for bulls as Bitcoin has posted positive 90-day forward returns 65% of the time during periods of shrinking hashrate. Investors will watch whether the network can stabilize as the AI pivot continues to reshape the industry landscape. The coming months will determine if this transition weakens security or creates a more sustainable ecosystem. VanEck noted this historical data in December.
