Bitcoin mining drops over 50% in US following winter storm

The Bitcoin network is faltering in the face of the American winter. In January, an extreme cold snap paralyzed part of the United States, causing a sudden slowdown in mining activity. While the United States now concentrates a large share of the world's hashrate, this episode highlights the sector's dependence on local energy infrastructure. The sudden drop in production raises questions about the real capacity of the network to withstand climatic shocks and the limits of a model that is nevertheless considered resilient.

A cold shock on production

While bitcoin could dip below $50,000, CryptoQuant reports : “data shows that major US publicly traded miners saw their combined production drop from 70–90 BTC per day to around 30–40 BTC during the storm”.

This decline, which occurred between January 14 and 17, coincides with a severe weather episode which hit large areas of the United States, causing extreme tensions on electrical networks. Companies affected include Core Scientific, CleanSpark, Marathon, Riot Platforms, Iris Energy, Bitfarms, TeraWulf and Cipher Mining, all forced to adjust their operations accordingly.

Details noted by analysts emphasize a series of measures taken to avoid the collapse of the local energy system:

• A voluntary reduction in mining activity to ease pressure on overloaded electricity networks;
• The coordinated decline in computing power in the most affected states, notably Texas;
• Partial or total suspension of machines on certain farms during peak consumption;
• Close communication between mining operators and energy authorities, in order to anticipate peaks in demand;
• The direct consequence is a temporary collapse in block production, affecting the speed of transaction validation on the network.

These adjustments illustrate the industry's responsiveness to a sudden climate crisis, but also reveal the sector's growing vulnerability to external disruptions.

The drop in hashrate and economic tensions

Beyond the drop in production measured among listed operators, the entire Bitcoin network has been impacted.

Indeed, the network's overall hashrate saw a sharp drop during the same period, reflecting a massive disengagement of machines in the affected regions. “These events caused a significant drop in the computing power dedicated to the network, highlighting its sensitivity to extreme weather events”notes CryptoQuant.

This temporary contraction has had tangible economic consequences. According to data from YCharts, daily mining revenue fell to around $28.3 million on January 14, marking one of the lowest levels recorded in a year.

For mining specialists operating at the limit of their profitability, this volatility represents real financial stress, accentuated by the stagnation of the price of bitcoin during this period. Some analysts also point out that this increased dependence on weather conditions could hamper future investments in energy-unstable areas.