Bitcoin's (CRYPTO:BTC) hash rate has dropped to a two-month low of 575 EH/s as miners shut down less efficient rigs following the recent halving.

This decline, attributed to increased mining costs and rising electricity prices, was anticipated by CoinShares, which predicts a hash rate surge by 2025.

Smaller mining operations with outdated equipment are particularly affected, while companies with efficient infrastructure, like TeraWulf, remain resilient.

The profitability of mining operations hinges on electricity costs, with older ASIC models becoming unprofitable above $0.09/kWh.

Despite challenges, TeraWulf plans to expand its operations.