Bitcoin mining stocks rose sharply after a severe US winter storm forced some miners offline, reducing network competition and improving profitability for operators that remained active.
Shares of major miners including TeraWulf, Iren and Cipher Mining posted double-digit gains, rising about 11%, 14% and 13% respectively, as the Bitcoin network hashrate plunged.
The network’s hashrate fell to a seven-month low of 663 exahashes per second on Sunday, a roughly 40% drop in two days, before partially recovering to about 814 EH/s by Wednesday.
Lower hashrate levels reduced competition for block rewards, lifting miner profitability, with the Bitcoin hashprice index rising to about $0.040 per terahash per day from $0.038, according to HashrateIndex data.
The storm forced multiple US miners to curtail operations to support the power grid, said Julio Moreno, head of research at CryptoQuant, noting sharp production drops across firms including CleanSpark, Riot, Marathon and Iren.
“The extreme winter weather in the US punished weak mining operations,”
Bitcoin mining firm Braiins said, adding that poor preparation and rushed restarts in freezing conditions often lead to equipment damage.
The episode highlights how large, well-capitalised miners can benefit during temporary network disruptions, while smaller or less efficient operators are more likely to be pushed offline.
At the time of reporting, Bitcoin price was $88,483.59.