Bitcoin Hashrate Recovers Above 1 Zettahash as Profits Hit Historic Lows

Edgen Crypto

·Mar 01 2026, 15:05

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Key Takeaways

The Bitcoin network's computational power has rebounded past a key threshold after weather-related disruptions in the U.S., but miners face a severe profitability squeeze. This dynamic creates a conflicting outlook, with a secure network on one hand and financially stressed operators on the other.

Network Resilience: Bitcoin's hashrate surpassed 1 zettahash per second (ZH/s) on March 1, 2026, signaling a full recovery after an Arctic blast temporarily halted U.S. mining operations.
Profitability Crisis: Despite the high network activity, miner profits are hovering near historic lows, putting extreme financial pressure on operators to cover their costs.
Sell-Side Risk: Low profitability may force miners to sell their Bitcoin reserves to remain solvent, potentially increasing selling pressure on the market and driving industry consolidation.

Network Hashrate Rebounds Past 1 Zettahash

The Bitcoin network's total computing power recovered above the 1 zettahash per second (ZH/s) milestone on March 1, 2026. This resurgence demonstrates the network's resilience, coming after an Arctic blast in the United States forced many large-scale mining operations to temporarily shut down. A higher hashrate indicates a more secure network, making it exponentially more difficult and expensive for malicious actors to attack the blockchain.

Miner Profits Approach Historic Lows

This operational strength contrasts sharply with the industry's dire financial state. Miner profitability is currently near all-time lows, creating a challenging economic environment. The combination of high energy costs and a competitive market is squeezing profit margins. This pressure could compel mining companies to liquidate their Bitcoin holdings to cover operational expenses, introducing significant selling pressure into the market. Furthermore, sustained low profitability often triggers a wave of consolidation, where larger, more efficient miners acquire smaller, struggling operations.