The first quarter of 2026 was marked by a noticeable cooling in the cryptocurrency mining industry. According to the latest report from Hashrate Index, the total computational power of the Bitcoin network (30-day SMA) decreased by 5.8%, falling from 1066 EH/s in January to 1004 EH/s by the end of March.
Analysts emphasize that this is not a random fluctuation, but a consequence of fundamental changes in the economics of mining.
Causes of the Downturn: Economics Over Politics
Contrary to expectations, the primary driver of the decline was profitability rather than geopolitical upheaval. Experts highlight two key factors:
- Mass Decommissioning of Legacy Hardware: Older mining rigs have ceased to be profitable under current electricity prices and market volatility.
- Shifting Priorities: Major data centers have begun diversifying their operations, reallocating power capacities toward the high-margin Artificial Intelligence (AI) sector.
Mining Geography: The Top Three Leaders
The top three countries still account for approximately 65% of global mining capacity, though interesting trends have emerged within this group:
| Country | Market Share | Dynamics and Reasons |
| USA | 37.4% | Maintains leadership (375 EH/s) despite a slight dip (-0.13%) caused by the migration of capacity to AI computing. |
| Russia | 16.9% | Solid second place. The country showed a share increase (up from 16.4%), strengthening its position in the industry. |
| China | 12.0% | Third place. In physical terms, the hashrate dropped from 125 to 120 EH/s due to government raids in Xinjiang late last year. |
New Growth Hubs: Who is Gaining Ground?
While power concentration remains high, the mining map is becoming increasingly diverse. Analysts recorded “explosive” annual growth in regions with cheap energy:
- Kyrgyzstan: +300%
- Laos and Finland: +100%
- Paraguay: +54%
Additionally, Ethiopia is actively breaking into the top 10, while countries in the Middle East and Southeast Asia are emerging as new magnets for mining operations.
Regional Contrast: While Iran lost nearly 80% of its capacity (dropping from 9 EH/s to 2 EH/s) amid regional conflict, neighboring UAE and Oman remained stable, proving the resilience of their infrastructure.
The Success Formula in 2026
According to Hashrate Index, capital migration will continue toward jurisdictions that can offer a “golden triad” of conditions:
- Excess and affordable electricity.
- Transparent and stable regulation.
- Advanced infrastructure and access to capital markets.
Current Network Status: Early April brought a market correction — Bitcoin mining difficulty rose by nearly 4%, following a sharp 8% drop in late March. This signals that the network is adapting to new conditions and is gradually stabilizing.
