Hut 8 Stock Plunges 12.47% Amid Crypto Mining Struggles

On April 7, 2025, Hut 8's stock experienced a significant drop of 12.47% in pre-market trading, reflecting the broader challenges faced by the cryptocurrency mining industry.

Bitcoin miners are currently under financial strain due to declining transaction fees and a drop in hashprice, which has increased operational costs. The hashprice, which represents the revenue miners earn per unit of computing power, fell to $45/PH/s in February, erasing gains from the U.S. election-driven price surge. This decline has put pressure on less efficient miners, who are struggling to maintain profitability.

Transaction fees, which made up just 1.3% of total block rewards in February, are at their lowest share since the 2022 bear market bottom. This trend is expected to continue into March, further squeezing miners' margins. Additionally, increased competition from AI data centers is adding to the pressure on mining operations that rely on hosting agreements and asset-light strategies.

Despite these challenges, some mining companies have shown growth. MARA remains the industry leader with a 44 EH/s hashrate, while CleanSpark grew by 12% to 39 EH/s. However, the overall market capitalization of 15 major mining firms dropped from $36 billion in January to $22 billion in March, with companies like Hut 8, Cipher, Canaan, HIVE, and Bitdeer seeing losses exceeding 40%.

With network growth slowing and energy costs rising, miners are in urgent need of a Bitcoin price rally to alleviate further financial strain. The industry's future will depend on how well these companies can adapt to the changing landscape and improve their operational efficiency.