Q1 Bitcoin Mining Results May Fall Short of Expectations as Hash Rate Drops, Fees Increase: CoinShares
Author: Will Canny | Edited by: Sheldon Reback Updated: April 28, 2025, 6:01 PM Published: April 28, 2025, 4:15 PM
What you need to know:
- CoinShares noted that the decline in hashrate and rising trade tariffs could negatively impact the results of Bitcoin mining companies in the first quarter.
- The report found that miners using older or less efficient equipment were becoming more dependent on tariffs.
- The Bitcoin network hashrate could reach 1 zettahash per second (ZH/s) by July and 2 ZH/s by early 2027, according to the asset manager.
Bitcoin (BTC) miners' first-quarter results could be disappointing as the hash rate, which measures the daily profitability of mining, continues to decline and trade tariffs weigh on the market, asset manager CoinShares (CS) said in a blog post on Friday.
“Second-quarter results could worsen as tariffs on imported mining equipment range from 24% (in Malaysia) to 54% (in China),” analysts led by James Butterfill said.
The report says that Bitcoin miners using older or less efficient hardware are more susceptible to these tariffs.
The authors note that Core Scientific (CORZ) is “better protected in the transition to HPC,” adding that Bitdeer (BTDR), which makes its own rigs, could face margin pressure on sales outside the U.S.
The management company predicts that the Bitcoin network hashrate could reach 1 zettahash per second (ZH/s) by July and 2 ZH/s by early 2027.
The hashrate outlook does not look too optimistic.
The asset manager's model points to “a gradual structural decline, with prices likely to remain in the $35 to $50/PH/day range until the 2028 halving cycle.”
Tariffs and trade tensions could have a positive impact on Bitcoin adoption in the medium term, according to a research report from Grayscale published earlier this month.
Read more: HPC-exposed Bitcoin miners underperform in first two weeks of April: JPMorgan
