Bitcoin’s mining difficulty decrease on Jan. 27, for the first time since late September 2024. This drop was driven by an Arctic blast that hit the US, raising energy prices and making mining less profitable, according to data from Bitcoin mining firm Luxor.

Since difficulty adjusts every two weeks to maintain a 10-minute block time, this resulted in a downward revision.

The US accounts for 46% of the global bitcoin mining hashrate, with Texas contributing 17%.

The state’s reliance on renewable energy and increased natural gas demand led to higher electricity costs, further pressuring mining firms.

Miner revenue per terahash also declined in January compared to December, highlighting the financial strain.

Companies such as Riot Platforms, which operates a major Bitcoin mining facility in Rockdale, Texas, are exploring diversification, using computing power for AI and high-performance workloads.

Analysts at Luxor expect Bitcoin’s mining hashrate to stabilize as weather conditions across the US improve.