Oil surge squeezes Bitcoin miners, forces BTC selling and shutdowns

Brent jumps toward $113. Power costs spike. Bitcoin miners face a solvency squeeze as breakeven climbs.

Average production cost is about $88,000 per BTC against ~$69,200 spot. Source: Coinspeaker on BTC price risk from oil spike.

Electricity is 60–80% of opex. Natural gas tracks oil in shocks, lifting industrial tariffs in hubs like Texas. Goldman sees Brent averaging ~$110 with possible spikes above $147 if shipping lanes stay blocked. Source: Coinspeaker.

The sector was running at a ~21% loss before escalation. A 1.5¢ per kWh increase pushes Antminer S19j Pro underwater; older S19 units become unviable without fixed-rate PPAs. Source: Coinspeaker.

Spain’s PM urges reopening Hormuz and protecting Middle East energy sites, underscoring supply risk. Source: Pedro Sánchez on X.

Miners under pressure are selling BTC reserves to cover utility bills, adding supply into a volatile market. Grid-dependent operators in the US and Europe face curtailments or shutdowns to avoid gross losses. Source: Coinspeaker on Iran war and Bitcoin infra.

Operators on stranded energy or hydro in Iceland, Quebec, and Scandinavia hold an edge. Sustained Brent above $120 could force 10–15% of global hash rate offline, mainly fossil-fuel-peaked sites. If crude stays over $115, hash power migrates. Source: Coinspeaker.

Hash rate has already dropped ~40% from ATH in this cycle, signaling capitulation pressure. Source: Charles Edwards on X.

ETF inflows help but do not absorb miner selling. Upside is capped near ~$70,000 until energy markets de-escalate. Source: Coinspeaker.

Key pressures
- Brent near $113 lifts power tariffs for miners. Source: Coinspeaker
- Breakeven at ~$88k vs ~$69.2k spot. Source: Coinspeaker
- 10–15% hash risk if Brent >$120. Source: Coinspeaker