Bitcoin Mining Difficulty Drops 7.76% as Hashrate Declines From October 2025 Peak

Bitcoin's mining difficulty fell 7.76% to 133.79 T following the scheduled recalculation on March 21. The adjustment marks the second-deepest decline since the start of 2026, after an 11%+ plunge recorded on February 7.

Network Hashrate Continues Downward Trend

Despite the difficulty correction, the average block interval at the time of writing exceeded 11 minutes, signaling that computing power remains under pressure.

The previous major drop — over 11% on February 7 — was triggered by mass equipment shutdowns during a severe winter storm across the United States. While hashrate recovered swiftly after that episode, the broader trajectory remains bearish.

The network's average total computing power, smoothed by a seven-day moving average, has been on a sustained decline since peaking in mid-October 2025. Over that period, hashrate dropped from a record 1.15 ZH/s to 940 EH/s.

Why This Matters

The 7.76% difficulty reduction pushed hashprice — the key metric for mining profitability — back above $33 per PH/s per day. However, industry experts estimate the average breakeven level for miners at approximately $40 per PH/s per day, meaning most operations are still running at a loss.

With Bitcoin trading at roughly $70,800 according to CoinGecko, public mining companies face a challenging environment. According to calculations by TheEnergyMag, based on Q4 2025 corporate financial reports, only 2 out of 14 major publicly listed U.S. miners are profitable: IREN and American Bitcoin Corp., which is affiliated with the Trump family.

Under margin pressure, industry participants are increasingly diversifying into higher-margin AI services and exploring other avenues to bolster returns. Analysts at Wintermute have previously stated that the traditional Bitcoin mining business model has become outdated due to declining profitability.

BitFuFu Posts Record Revenue Alongside $57.4M Net Loss

Against this challenging industry backdrop, BitFuFu released its FY2025 financial results. The company reported a net loss of $57.4 million, compared to a $54 million profit in the prior year.

"$FUFU FY 2025 Highlights💰 Revenue: $475.8M (ATH)📈 Adj. EBITDA: $8.3M💸 Cash and Cash Equivalents and digital assets: $177.1M☁️ Cloud Mining Solutions: $350.6M (73.7%, +29.4%YoY, ATH)⛏️ Self-mining Operations: $63.1M (13.3%)🖥️ Mining Equipment Sales: $53.7M (11.3%,+76.1%…" — BitFuFu (@BitFuFuOfficial), original post

Total revenue reached a record $475.8 million. Cloud mining solutions were the primary growth driver, generating $350.6 million — 73.7% of total revenue — with year-over-year growth of 29.9%. Self-mining operations contributed $63.1 million, while mining equipment sales brought in $53.7 million, representing over 76% annual growth.

BitFuFu's user base expanded to 675,765 customers. The company's managed hashrate stood at 26.1 EH/s with an installed capacity of 478 MW. At year-end 2025, BitFuFu held 1,778 BTC on its balance sheet.

In its press release, BitFuFu reaffirmed its commitment to a vertical integration strategy — scaling cloud mining operations, expanding capacity while maintaining disciplined returns, optimizing capital allocation, and continuing to grow its treasury.