Mining Crisis Creates Wave of Deactivations: 20K of 400K Miners Have Already Left the Market in December

The Bitcoin mining market is facing a critical moment. According to recent industry analyses, the hashrate dropped to approximately 1,200 EH/s in mid-December 2025, representing an 8% decline from previous levels. The significant decrease reflects a more concerning reality: about 20,000 miners, or 5% of the total 400,000 active operators, have already shut down their machines.

The Impact on Mining Infrastructure

The scenario is based on statistics indicating an average of 250 T of hashrate per mining unit. When converting this proportion to the number of shutdowns, we conclude that approximately 400,000 mining nodes have been affected by the contraction. This alarming data signals not only a market correction but a profound restructuring of the ecosystem.

Xinjiang at the Center of the Crisis

The origin of this slowdown is intrinsically linked to the progressive closure of Proof of Work operations in Xinjiang. The region, which historically concentrated a significant share of global mining capacity, is seeing its projects being shut down or relocated. This forced movement redefines the geography of Bitcoin mining and directly impacts the distribution of computational power on the network.

What Lies Ahead

With 20,000 miners already out of the market and hashpower declining, the question remains whether we will see stabilization or an intensification of the crisis. The relocation of operations to other regions may take time, leaving a temporary gap in the security and efficiency of the Bitcoin network during this transition period.