Bitcoin Miners Decrease Production, Dropping Hashrate to Three-Week Low

The seven-day average hashrate for Bitcoin has decreased to about 915.8 EH/s, while miner holdings fell by 1,530 BTC within a week, based on mining data from September 20 to September 26.

Digital Asset reported that the seven-day moving average stood at 915,844,520 TH/s on September 26, which reflects a decline of about 34.86 million TH/s compared to the prior week. This reading is the lowest since approximately September 3.

During this timeframe, CryptoQuant data referenced in the report indicated that miner Bitcoin reserves totaled 1,192,766 BTC, down by 1,530 BTC from the previous week.

Bitcoin hashrate declines after September rebound

The hashrate metrics suggest that the combined computing power securing the Bitcoin network on a seven-day average basis is lower than it was the week prior.

Hashrate is a measure of the total computational power miners utilize to process Bitcoin transactions and compete to add new blocks. A higher network hashrate generally indicates that more computing resources are engaged in mining activities.

Public Mempool mining data reinforces the lower trend observed in late September. Daily and pool-level readings fell below one zettahash during several sessions, having previously surpassed that threshold earlier in September.

CoinWarz recorded the Bitcoin network hashrate at approximately 954 EH/s on September 25, down from nearly 984 EH/s the day before. Daily estimates reflected significant fluctuations throughout September, with levels exceeding 1 ZH/s on September 15 and September 9.

This trend follows a longer-term decline from Bitcoin’s peak in late 2025. Raphael Zagury, CEO of Twenty One Capital, referred to this period as the first “hashrate bear market” for Bitcoin, indicating the distance from the previous all-time high.

Zagury estimated the decline from the late 2025 peak to be around 22% to 24%, attributing part of the decrease to mining companies reallocation of resources and capital toward artificial intelligence computing.

The seven-day average on September 26 provides a shorter-term perspective and should not be interpreted as definitive evidence that all miners are scaling back their capacity. Bitcoin’s hashrate can vary due to factors such as block timing, energy conditions, mining difficulty, and changes in operational equipment.

Miner reserves decrease by 1,530 BTC in one week

Throughout the same week, Bitcoin held by miners saw a decline. CryptoQuant data cited by Digital Asset placed miner reserves at 1,192,766 BTC on September 26, reflecting a decrease of 1,530 BTC compared to the previous week.

CryptoQuant defines miner reserves as Bitcoin held within wallets tied to miners and mining pools. A decrease in reserves signifies that coins have exited the monitored miner wallets, though the ultimate destination and purpose can vary.

Outflows may involve selling to exchanges, transferring to custodians, utilizing as collateral, lending, or other treasury activities. Therefore, a reserve decline does not necessarily imply that every Bitcoin moved has been sold in the market.

Earlier in September, miner reserves briefly showed an increase. Reporting based on CryptoQuant data indicated that miner holdings rose to approximately 1.1919 million BTC on September 5, marking an uptick of 261 BTC from the previous week.

Publicly traded mining companies exhibit varied treasury strategies. For instance, CleanSpark managed to mine 593 BTC in August but sold 821 BTC during the same month.

As previously reported by crypto.news on CleanSpark’s August performance, the company concluded the month with 13,703 BTC and maintained an average operating hashrate of 38.3 EH/s. Other miners have scaled back or halted operations as they redirect their computational infrastructure to serve AI clients. Hyperscale Data ceased Bitcoin mining at its Michigan facility on September 1 to prepare the site for an AI computing agreement.

According to crypto.news, Hyperscale Data’s Bitcoin reserves significantly declined, dropping approximately 79% from 1,006 BTC in July to about 215 BTC.

Despite the decrease in miner reserves and hashrate, Bitcoin’s Puell Multiple saw an increase over the week. Digital Asset reported a level of 1.13 on September 26, rising by 0.24 from the previous week. This metric compares the daily U.S. dollar value of newly mined Bitcoin with its 365-day moving average.

A reading above one implies that daily miner revenue from issued Bitcoin surpasses its one-year average. However, the indicator does not directly measure miner profitability as it does not factor in operational costs like electricity, financing, or equipment expenses.

Public mining dashboards indicate similar figures around the neutral zone. HalvingLens reported the Puell Multiple at approximately 1.01 on September 26, categorizing it as normal. The site estimated that daily miner issuance was around 450 BTC, generating daily revenue of approximately $37.8 million at that time.

Variations in individual Puell readings can be attributed to data timing, source prices, and methodologies. The Digital Asset report’s figure of 1.13 is specific to the cited source for September 26.

The current block subsidy for Bitcoin remains at 3.125 BTC following the halving in April 2024, and as detailed in crypto.news’ updated halving guide, the next scheduled reduction is anticipated around 2028, when it will decrease to 1.5625 BTC per block.

Mining conditions vary across regions

Mining conditions have significantly varied among operators throughout September. For instance, Ethiopia reduced electricity supplied to Bitcoin miners to 23% of contracted levels after a 20% decline in reservoir inflows, as reported by Ethiopian Electric Power.

Crypto.news covered the electricity limitations, noting that Bitcoin mining accounted for nearly one-third of Ethiopia’s electricity consumption and generated 35% of the utility’s revenue over the previous fiscal year.

The utility intends to reevaluate conditions in October, and further restrictions may depend on reservoir levels and electricity demand. At the network level, Bitcoin continued normal block production, despite the lower seven-day hashrate statistic. Mempool data indicated that blocks were still clearing on September 26, with pool shares and short-term hashrate estimates fluctuating throughout the day.

Bitcoin’s difficulty adjustment mechanism recalibrates approximately every 2,016 blocks to account for variations in network computing power. The next adjustment will react to actual block production over the entire difficulty period, rather than solely a single seven-day hashrate reading.