Bitcoin Miners Face 24%-54% Tariff Impact, Profitability Declines
1min read Bitcoin miners may face disappointing first-quarter results due to a decline in hashprice, a key indicator of daily mining profitability, and the impact of trade tariffs on the market, according to a report by asset manager CoinShares. The report, published on Friday, highlights that the second-quarter results may also show deterioration as tariffs on imported mining rigs vary significantly across different regions, ranging from 24% in Malaysia to 54% in China.
Miners relying on older or less-efficient rigs are particularly vulnerable to these tariffs, which could further strain their profitability. core scientific, however, is noted to be better insulated from these tariffs as it transitions to high-performance computing (HPC). bitdeer, which manufactures its own rigs, may experience margin pressure on sales outside the U.S. due to these tariffs.
The asset manager predicts that the Bitcoin network hashrate could reach 1 zettahash per second (ZH/s) by July and 2 ZH/s by early 2027. However, the outlook for hashprice is less optimistic. According to CoinShares' model, there is a gradual structural decline expected, with hashprice likely to remain range-bound between $35 and $50 per PH/day through to the 2028 halving cycle.
Ask Aime: Can I trade Bitcoin miners despite expected disappointing results?
Despite the challenges posed by tariffs and trade tensions, some analysts suggest that these factors could have a positive impact on bitcoin adoption in the medium term. This perspective was echoed by another asset manager, who noted that the current environment could drive greater interest and investment in bitcoin as a hedge against economic uncertainties.
