Bitcoin’s hashrate declined in the first quarter of 2026 for the first time since 2020, dropping roughly 4% year-to-date to hover around 1 zettahash per second.
After five consecutive years of double-digit growth, the slowdown reflects mounting pressure on mining economics. With production costs near $90,000 per bitcoin and the spot price around $67,000, many large U.S.-based mining firms are pivoting to artificial intelligence and high-performance computing infrastructure.
Funding for this shift comes from debt issuance and bitcoin asset sales, reducing reinvestment in mining operations. As a result, hashrate performance is becoming increasingly tied to bitcoin’s market price.
Despite concerns over reduced network security, the pullback by dominant U.S. miners may foster greater geographic decentralization, potentially strengthening the network’s resilience long term.