Bitcoin Hashrate Drops 5.8% in Q1 2026 as 252 EH/s of Legacy Mining Hardware Goes Offline

Bitcoin network loses nearly 6% of computing power in one quarter

Bitcoin's 30-day simple moving average hashrate declined from 1,066 EH/s to 1,004 EH/s during the first quarter of 2026 — a 5.8% drop. According to analysts at Hashrate Index, the primary driver was the shutdown of 252 EH/s worth of legacy mining hardware that became unprofitable to operate.

"Global hashrate dropped to 1,004 EH/s in Q2 2026, down -5.8% QoQ. The cause is profitability. Bitcoin fell ~50% from its $124K peak → hashprice hit an all-time low of ~$27.89/PH/s/day → 252 EH/s of legacy hardware went offline." — Hashrate Index 🟧⛏️ (@hashrateindex), original post

Bitcoin's price fell approximately 50% from its $124,000 peak, pushing the hashprice metric to a record low of roughly $27.89 per PH/s per day. That collapse in mining revenue rendered older-generation ASICs economically unviable.

Why this matters

A nearly 6% quarterly decline in hashrate reflects intense profitability pressure across the mining industry. When revenue fails to cover operational costs, miners are forced to either decommission aging machines or redirect capacity toward alternative uses such as AI computing. The shift also reshapes the geographic distribution of Bitcoin's mining power, as jurisdictions with cheaper energy and better infrastructure attract a growing share of activity.

Country-level hashrate distribution

Hashrate Index emphasized that geographic shifts in network capacity are driven by profitability trends rather than geopolitical conflicts. Changes among the leading countries were modest:

• United States retained the top position with a 37.4% share. Hashrate dipped just 0.13% to 375 EH/s, partly due to operators diversifying into AI workloads;
• Russia strengthened its second-place position, increasing its share from 16.4% to 16.9%;
• China rounded out the top three with a 12% share (up from 11.7%). In absolute terms, however, the country's hashrate fell 1.35% — from 125 EH/s to 120 EH/s. Analysts attributed the decline to the aftermath of December raids against miners in the Xinjiang Uyghur Autonomous Region.

Together, these three nations account for roughly 65% of the global Bitcoin hashrate. Despite this concentration, Hashrate Index notes emerging signs of diversification: Ethiopia is climbing within the top 10, while Middle Eastern and Southeast Asian countries are strengthening their positions.

Standout performers and laggards

On a year-over-year basis, several jurisdictions posted remarkable hashrate growth:

• Kyrgyzstan — up 300%;
• Laos — up 100%;
• Finland — up 100%;
• Paraguay — up 54%.

Hashrate Index attributed the success of these countries to the deployment of modern mining equipment and competitive energy supply advantages. Jurisdictions that consistently attract miners share several characteristics: cheap and abundant electricity, favorable regulation, and access to infrastructure and capital.

On the opposite end, Iran lost approximately 7 EH/s of its 9 EH/s capacity amid a regional conflict. Neighboring UAE and Oman, however, showed no significant impact from the hostilities.

Network difficulty context

In early April, Bitcoin's mining difficulty rose nearly 4% following an approximately 8% decline during the previous adjustment. The data suggests the network is recalibrating to the new hashrate baseline established after the large-scale decommissioning of legacy machines.