A severe winter storm across the United States in late January 2026 significantly disrupted Bitcoin mining operations, revealing the industry's vulnerability to extreme weather events and regional power grid vulnerabilities. Production data indicates a sharp decline in hashrate, miner revenue, and overall network activity during the storm.
The storm, which impacted over 36 states, brought heavy snow, ice, and freezing temperatures, leading to a surge in electricity demand. In response, many Bitcoin miners, particularly those in the US, voluntarily curtailed or completely shut down operations to ease the pressure on strained power grids. This decision aligns with demand-response practices, where large electricity consumers reduce their load during peak demand. Abundant Mines, a crypto mining firm, reported that roughly 40% of global mining capacity went offline within a 24-hour window due to the storm.
Data from Cryptoquant showed a sudden, network-wide drop in hashrate, production levels and miner revenues during the extreme weather. The Bitcoin network's hashrate experienced a significant drop, with estimates suggesting a decline of roughly 12%. Some reports indicated an even steeper decline of 40% between January 23 and 25, reaching a low of 663 exahashes per second (EH/s), the lowest level in seven months. This placed the hashrate at levels last seen in mid-2025. Consequently, block production slowed, with block times increasing to around 12 minutes for a period.
The production data also revealed a considerable decrease in daily Bitcoin mining revenue, dropping from approximately $45 million on January 22 to around $28 million within two days. Although revenues partially recovered to $34 million by January 26, they remained significantly below pre-storm levels. Output from major publicly traded mining companies also experienced a sharp decline, falling from about 77 BTC per day to just 28 BTC during the disruption. Other miners saw their collective production drop from roughly 403 BTC per day to around 209 BTC. Major mining pools like Foundry USA and Luxor also reported sharp declines. For example, Foundry USA, which accounts for a significant portion of the global hashrate, saw its hashrate plummet from 328 EH/s to 139 EH/s. Publicly traded miners recorded production losses of up to 48 BTC over the period, while other miners collectively lost an estimated 215 BTC. Individual mining firms like CleanSpark, Riot Platforms, Marathon Digital, and Iren experienced substantial reductions in their daily Bitcoin output.
Despite the challenges, some analysts point out that the flexibility of Bitcoin mining operations, with their ability to quickly shut down and restart, can be a strength. Miners can act as a flexible electrical load, providing grid operators with a pressure-release valve during tight conditions. Some miners strategically sold electricity back to the grid, resulting in increased profits. For miners who remained online, the reduced competition led to improved conditions and increased profitability.
The winter storm exposed the risks associated with the concentration of Bitcoin mining operations in specific geographic regions, particularly in the US, which accounts for a significant portion of the global hashrate. The event underscored the importance of geographic diversification to ensure long-term network resilience. Cryptoquant's Miner Profit/Loss Sustainability Index fell to 21, its lowest level since November 2024, suggesting miners are "extremely underpaid" under current conditions.
Looking ahead, the recovery of miner profitability will likely depend on improved price conditions, stable energy availability, and the recalibration of mining difficulty. The incident also highlights the growing trend of Bitcoin miners participating in demand response programs and acting as flexible energy consumers to support grid stability.