Bitcoin Mining Revolution: Hashrate Hits Record High, Mining Companies Liquidate BTC, Profitability Under Pressure Analysis

In February 2026, Bitcoin mining experienced a historic structural turning point. While Bitdeer, leveraging its self-developed mining hardware, surged to become the top publicly listed miner in terms of self-operated hash rate, it made a shocking decision: to liquidate all of its Bitcoin holdings. At the same time, the core profitability metric for miners, hashprice, plummeted to a record low of just $0.03 per TH, with the network’s average mining cost deeply inverted relative to Bitcoin’s price. Behind these seemingly contradictory data points is a profound industry transformation—from “HODLing for appreciation” to “cash is king,” from energy competition to infrastructure-based computing power. This article reviews key events in February, traces the timeline, dissects data, examines narrative authenticity, and explores multiple scenarios for the industry’s future.

The Paradox of Hashrate Peak and Zero Holdings

On February 20, Bitdeer released its weekly update, showing its BTC holdings had dropped to zero (excluding customer deposits). The 189.8 BTC produced that week had all been sold, resulting in a net change of -943.1 BTC. Founder Wu Jihan responded that holding zero does not mean it will stay that way forever; the move was mainly to prepare liquidity for evaluating several non-binding land acquisition opportunities for energy.

Dramatically, around the same time, Morgan Stanley analysts reported that Bitdeer’s self-operated hash rate had reached 63.2 EH/s, surpassing MARA’s disclosed 60.4 EH/s, making it the highest among listed miners. The simultaneous peak in hash rate and zero holdings broke the traditional market perception that “hash rate equals coin accumulation.”

Meanwhile, industry profitability rapidly declined. According to Luxor Technology, in February, the key profitability indicator, hashprice, fell to about $0.03 per TH, a historic low. Bloomberg reported that, amid Bitcoin’s price dropping below $70,000, rising energy costs, and winter storms in the U.S., many miners were forced to shut down some equipment.

From Difficulty Surge to Collective Shift

The turbulence in Bitcoin mining in February is a continuation and acceleration of market trends since late 2025. Key milestones include:

• Early February: Mempool founder monitoring showed Bitcoin mining difficulty surged nearly 15% to 144.4 T, the largest absolute difficulty increase ever, nearly offsetting the previous significant adjustment downward.
• February 9: The network experienced an approximately 11% historic difficulty adjustment, indicating many miners are accelerating shutdowns.
• February 20: Bitdeer announced liquidation of Bitcoin holdings, marking a major strategic shift among leading miners.
• Late February: MARA Holdings announced a partnership with Starwood Capital to convert some mining farms into AI data centers, initially planning 1 GW capacity. Aggressive investor Starboard Value urged Riot Platforms to accelerate AI/HPC transformation.

Rebuilding Hashrate, Costs, and Capital Flows

February’s data clearly depict industry pressure and divergence. Key data points include:

Data indicates that relying solely on Bitcoin price appreciation cannot cover rising energy and equipment costs. The survival logic of miners is shifting from “mine-hold-finance” to “mine-liquidate-reinvest (AI or new infrastructure).”

Market Divergences and Narrative Conflicts

Several core disagreements have emerged around industry developments:

• Is liquidation surrender or strategy?

Some analysts see Bitdeer’s liquidation as a sign of liquidity stress, especially with hashprice at an all-time low and Bitcoin below average cost. Others argue that, alongside issuing convertible bonds and investing heavily in AI infrastructure, this is a proactive capital reset rather than a passive bankruptcy.

• Is AI transformation a way out or a bubble?

Institutions like Morgan Stanley see promise in converting mining farms into AI data centers, citing the scarcity of AI compute resources and the value of existing energy and land assets. However, concerns exist that AI data centers demand much higher network stability and latency, and not all mining farms are suitable for such conversion. The huge capital expenditure could introduce new financial risks.

• Will declining hashrate threaten network security?

As older miners shut down, some worry that Bitcoin’s security might weaken. But Paradigm’s research suggests the opposite: Bitcoin mining should be viewed as “flexible electricity demand” and grid asset, whose adjustability can support grid stability. Long-term energy consumption is constrained by the halving mechanism, preventing indefinite growth.

“Miner Surrender” and “AI Savior”

In February, the most discussed narratives were “miners surrendering” and “AI transformation,” but their authenticity warrants caution.

“Miner surrender” does exist, mainly affecting high-cost, low-efficiency operations. The difficulty adjustment on February 9 confirmed many miners shut down. However, top companies like Bitdeer and MARA are not surrendering but actively reallocating assets and restructuring their businesses leveraging their capital and hash rate advantages.

The AI transformation narrative risks oversimplification. While companies like MARA, Hut 8, and TeraWulf are indeed shifting some capacity to AI/HPC, this process takes years and requires massive capital. Viewing it as an immediate solution to current profitability issues is overly optimistic. The current transition is more about positioning for future revenue streams than an instant fix for mining losses.

Bitcoin Ecosystem and Capital Market Reflections

Mining developments are triggering multi-layered ripple effects:

• Impact on BTC supply-demand: Leading miners shifting from “HODLing” to “selling” reduces natural market buffer. Historically, miners have been long-term holders, but now they are becoming more active sellers, potentially altering Bitcoin’s supply dynamics. Bloomberg reports that miners holding over $8 billion worth of Bitcoin are accelerating sales, reallocating funds into AI.
• Miner valuation logic: Capital markets are reassessing miner value. Morgan Stanley’s “REIT endgame” suggests that miners successfully transforming into AI infrastructure providers will enjoy more stable cash flows and higher valuation multiples. Conversely, companies relying solely on Bitcoin mining remain highly exposed to price volatility.
• Global hash rate distribution: US-based mining farms shifting toward AI may cause some Bitcoin hash rate to exit permanently or relocate to regions with lower energy costs and friendlier regulation (e.g., Russia, Middle East, South America). Canaan’s acquisition of Cipher Mining’s Texas assets and Russia’s mining expansion plans illustrate ongoing reshaping of the hash rate landscape.

Multi-Scenario Evolution

Based on current data and trends, the next 6 to 12 months could see three main scenarios:

• Scenario 1: Accelerated AI Integration

Conditions: Bitcoin price remains below $80,000, and demand for AI compute remains strong.

Outcome: More listed miners follow Bitdeer and MARA, issuing bonds or selling Bitcoin reserves to fund AI/HPC expansion. Industry stratifies into “crypto miners” and “digital infrastructure operators.”

• Scenario 2: Bitcoin Price Rebound and Hashrate Recovery

Conditions: Macro environment improves, Bitcoin reclaims $90,000–$100,000.

Outcome: Hashprice rebounds, some shutdowns reverse, but leading firms, having experienced the liquidation wave, prefer to deploy cash into dual business lines rather than rebuild Bitcoin holdings.

• Scenario 3: Liquidity Crisis and Industry Consolidation

Conditions: Bitcoin price continues downward or remains below $60,000 long-term.

Outcome: Small and high-leverage miners face large-scale bankruptcies (e.g., February’s NFN8 Group). Industry consolidates through acquisitions by cash-rich giants with low-cost energy, increasing market concentration.

Conclusion

February 2026 marks a symbolic end of an era for Bitcoin mining. Bitdeer’s peak hash rate and simultaneous liquidation highlight a fracture in the “mining as hoarding” ideology, challenged by capital efficiency and survival pressures. Hashprice hitting a record low reveals the industry’s ongoing struggle to maintain profitability amid Bitcoin’s volatile high-price environment and halving effects.

The industry’s large-scale AI shift is fundamentally a redefinition of “electricity monetization.” It is both a reactive response to current difficulties and a proactive move to embrace new technological waves. For investors and observers, understanding mining now requires more than watching Bitcoin price charts; it demands attention to electricity markets, AI compute demand, and corporate asset-liability management. The upheaval starting in February is pushing Bitcoin mining into a more complex, more professional new phase.