Bitcoin miners and mining in general have a problem.
Brent crude exceeds $113 per barrel after Trump’s ultimatum to Tehran. Energy costs are skyrocketing and miners are in the direct line of fire. Production costs are already averaging $88,000 per bitcoin versus a spot price of around $69,200. Really bad math. Energy shock makes it worse.
Electricity accounts for 60 to 80% of miners’ operating costs. When oil prices rise, industrial electricity tariffs follow. Every tick in energy prices pushes the break-even threshold further than what the market is actually paying for Bitcoin.
Marginal miners run out of runway.
explores: BTC price risks from rising oil
Hormuz Premium: Transferring Energy Costs to Mining Economics
It was called Hormuz Premium.
Industrial capacity rates in major mining centers like Texas depend on natural gas, and natural gas tracks oil during supply shocks. Goldman Sachs raised its forecast for Brent crude to $110 on average, with potential rises above $147 if shipping lines remain closed. Every dollar that rises in oil prices means another rise in the kilowatt-hour bill.
The miners were already bleeding before that. The sector was operating at an average loss of 21% before the escalation. An increase of 1.5 cents per kilowatt-hour pushes the Antminer S19j Pro to great depths underwater. Powering older S19 series devices becomes mathematically impossible for any grid-connected facility without a fixed-price power purchase agreement.
The Spanish government demands the opening of the Strait of Hormuz and the preservation of all energy sites in the Middle East.
We stand at a global turning point. Further escalation could lead to a long-term energy crisis for all of humanity.
The world should not pay the consequences…
– Pedro Sanchez (@sanchezcastejon) March 22, 2026
This is not just a profitability problem. It’s a solvency problem. Miners caught in a crisis have one option: sell their bitcoin reserves in a volatile market to cover utility bills. This selling pressure is hitting the order book at exactly the wrong time.
The earthquake divides the sector into two parts. Grid-based miners in unregulated markets such as the United States and energy-importing regions of Europe face the most pressing pressures. Cutbacks during peak hours or complete closures become the only way to avoid operating at a huge loss.
Miners with access to stranded power or hydro-dominant grids in Iceland, Quebec or Scandinavia have and maintain a structural advantage. Analysts expect that keeping Brent above $120 will force 10-15% of the global hash rate offline, specifically targeting peaked fossil fuel operations.
If the price of crude oil remains above $115, hash power will be rolled over. Incompetent operators are eliminated. What remains is a smaller, more capital-efficient network, but getting there means a painful capitulation event first.
explores: The impact of the Iranian war on Bitcoin infrastructure
Sovereign energy security: the new competitive moat
The efficiency of the devices was the trench. But the Hormuz crisis changed that.
Sovereign energy security constitutes the new competitive advantage. Pricing of commercial networks has revealed itself as a constraint, and institutional capital is rotating towards operations that own their own energy source or operate under sovereign protection. Bhutan. El Salvador. Vertically integrated devices that operate on stranded gas that is physically disconnected from global export markets.
Access to energy is no longer just a cost variable. It is counterparty risk. Miners relying on the network are one geopolitical shock away from seeing their operating expenses double overnight. Operations that operate on flared gas or remote hydropower are completely outside the scope of these risks. Input costs remain constant while competitors are priced out of the network.
Direct price feedback loop. Miners facing margin calls from rising energy bills have one step left to do: liquidate their Bitcoin treasury holdings. This selling pressure is hitting a market already turbulent due to geopolitical risks. Santiment data shows that miner balances continually decline during energy spikes. Inflows from ETFs provide a buffer, but they don’t capture everything.
No one is talking about Bitcoin hash rate collapsing by -40% compared to ATH. Biggest miner surrender since 2021. Yes. The energy value in turn decreases. This certainly means that some big miners are turning away from cryptocurrencies. pic.twitter.com/JKFQmQeHYl
– Charles Edwards (@Capriolio) January 29, 2026
The silver lining is structural. Miner surrender events historically indicate price bottoms. As unprofitable operators are disconnected, network difficulty decreases, leading to wider margins for those who survive. The network continues to produce blocks regardless of the total chaos outside it. On-chain data indicates that a difficulty adjustment is approaching, which could give the surviving miners temporary relief.
But this relief comes later. Right now, the selling pressure is real and the maximum rise is near $70,000.
Until energy markets indicate de-escalation, the backlog from mining will remain. The digital gold narrative is being tested against a very material problem.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to provide accurate and timely information but should not be considered financial or investment advice. Since market conditions can change rapidly, we encourage you to verify the information yourself and consult with a professional before making any decisions based on this content.
Daniel Francis is a technical writer and Web3 educator specializing in macroeconomics and DeFi mechanics. A crypto native since 2017, Daniel brings his background in cross-chain analytics to author evidence-based reports and detailed guides. It is certified by the Blockchain Council and is dedicated to providing “information gain” that cuts through the market noise to find blockchain’s real-world utility.
