At the beginning of 2026, listed Bitcoin miners recorded an average loss of about $19,000 per BTC produced. The weighted average production cost is around $80,000 per Bitcoin, while the spot price is around $67,800. The April 2024 halving reduced the block reward from 6.25 to 3.125 BTC. In addition, rising energy costs as a result of geopolitical uncertainties, particularly the conflict in Iran, have put further pressure on margins. The industry is responding to this with significant changes: over USD 70 billion in contracts in the areas of artificial intelligence (AI) and high-performance computing (HPC) have been signed by mining companies, which are increasingly becoming AI data center operators.
This trend is now a reality. MARA Holdings sold 15,133 BTC worth $1.1 billion in March alone to pay down debt and invest in AI infrastructure. CoinShares estimates that some miners could generate up to 70% of their total revenue from AI hosting by the end of 2026.
Who is switching and how big are the deals?
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The extent of the capital shift is considerable. Listed miners announced the following agreements through March 2026:
| Pursue | KI/HPC-Deal | Contract value | Main details |
|---|---|---|---|
| Core Scientific (CORZ) | CoreWeave-Hosting | $10.2 billion over 12 years | 200 MW reserved for AI. Sale of $175 million worth of BTC, complete withdrawal from mining planned |
| Hut 8 (HUT) | Google-powered leasing | $7 billion over 15 years | River Bend Campus. Rebranding to an AI infrastructure company |
| TeraWulf (WULF) | HPC contracts | $12.8 billion committed | Share price rose 25% after AI announcement |
| Riot Platforms (RIOT) | AMD-Leasing in Corsicana | ~$25M annual NOI (Phase 1) | 1 GW total capacity, 600 MW under review for AI/HPC |
| MARA Holdings (MARA) | Building AI infrastructure | Selling $1.1 billion BTC for financing | Selling 15,133 BTC in March to pay off debt and restructure |
The pattern is clear: Mining companies have three critical resources that are difficult to replicate for AI applications: long-term power purchase agreements at favorable terms, grid-connected locations, and existing cooling infrastructure for high-performance hardware. Converting to an AI data center requires swapping ASICs for GPUs and upgrading the network.
Riot Platforms stopped mining expansion at its Corsicana, Texas site in early 2025 and entered into a 10-year leasing agreement with AMD that yields 2.5 times higher gross margins per megawatt than traditional mining. Management expects an operating profit of between USD 1.6 and 2.1 billion for the complete AI expansion of the 1 GW site.
Why the classic mining model came under pressure
After the halving, miners will only earn 3,125 BTC per block (about $212,000 at a BTC price of $67,800). At the same time, production costs rose to approximately USD 80,000 per Bitcoin in the fourth quarter of 2025. The total costs (including depreciation and other operating expenses) are over USD 100,000 for many operators.
Rising energy prices – partly due to the Iran conflict – exacerbated the situation. Bitcoin’s network difficulty continued to rise in 2025 before most recently declining by 7.76% as unprofitable devices were shut down.
Hosting AI fundamentally changes the revenue model: Instead of fluctuating BTC income, AI contracts offer predictable, recurring revenue in US dollars – with operating margins of 80-90%. A megawatt used for AI delivers predictable liquidity, regardless of the BTC price.
The hashrate is already feeling the effects
The Bitcoin network saw its hashrate decline by about 4% to around 1 zettahash per second in the first quarter of 2026 for the first time in six years. After five years of continuous growth, this is a significant turnaround.
Two factors work together: Smaller, unprofitable operators switch off machines because electricity costs are too high. At the same time, large listed miners – which account for over 40% of the global hashrate – are increasingly shifting their capacity to AI hosting, thereby reducing the power available for mining.
Mining difficulty recently fell by 7.76%, the largest single adjustment in over a year. CoinShares continues to predict an increase to 1.8 ZH/s by the end of 2026 if the BTC price rises towards $100,000. However, if the price remains between USD 65,000-70,000, further declines are expected.
What consequences does this have for selling pressure on BTC?
The AI pivot changes the dynamics of BTC selling pressure: Previously, miners had to regularly sell BTC to cover ongoing costs – especially after halvings, when revenue drops but costs remain constant.
AI sales offer new opportunities: If miners fully cover their operating costs through AI hosting, there is no need to sell mined BTC. MARA used the proceeds from the sale of $1.1 billion in BTC in particular to pay down debt and finance infrastructure. Once the new infrastructure generates revenue, BTC holdings could be held as a treasury asset.
At the same time, many miners are currently selling larger BTC holdings to finance the transformation, which is temporarily leading to increased selling pressure. Core Scientific sold BTC worth USD 175 million, IREN completely liquidated its holdings and Cipher Digital significantly reduced its position. This increased selling pressure should ease once AI sales become stable.
Long-term impact on network security
A less discussed aspect of the AI pivot is the impact on the security model of the Bitcoin network, which depends directly on hashrate.
A decline of 4% does not currently pose any risk; at 1 ZH/s the network remains very resilient. Nevertheless, the development is relevant: If the trend continues and US miners further reduce their share, the geographical distribution of the hashrate could increase – which can have positive effects on decentralization.
The automatic difficulty adjustment in the network ensures that mining is worthwhile even with fewer participants and that block times remain stable. Although the security margin decreases, the remaining miners benefit from less competition.
Frequently asked questions
Why are Bitcoin miners switching to AI hosting?
After the April 2024 halving, the block reward was reduced to 3,125 BTC while at the same time energy costs increased, resulting in losses for many miners. AI hosting offers stable sales with high margins and is particularly attractive for operators with existing infrastructure.
Will Bitcoin Hashrate Continue to Drop?
This depends primarily on the price development. CoinShares expects a recovery to 1.8 ZH/s by the end of 2026 if BTC reaches $100,000. If the price remains lower, more miners could switch to AI hosting and the hashrate could fall further.
Does the AI Trend Affect Bitcoin Price?
In the short term, selling pressure increases as miners need to sell BTC to finance the transition. However, in the long term, AI sales could result in miners having to sell less BTC, reducing structural selling pressure.
Will the Bitcoin network remain safe if miners leave mining?
Yes, the protocol is prepared for fluctuations: difficulty adjustment ensures stable block times. In the medium term, the geographical and structural distribution of the hash rate is particularly worth monitoring.
Conclusion
The Bitcoin mining sector is currently experiencing the biggest change since the China ban in 2021. Companies are not only changing their location, but also their entire business model. Over $70 billion in AI contracts, declining hashrate for the first time and large BTC sales show a fundamental shift that will influence supply dynamics.
Whether and how quickly the trend continues depends largely on the BTC price in relation to the production cost limit. If the price rises above USD 80,000, classic mining should become more attractive again. If it stays in the $65,000-70,000 range, more miners will pivot and sell BTC until balance is restored through the difficulty adjustment. There could be a long-term positive effect for BTC holders as the selling pressure from miners could decrease significantly.
This article is for informational purposes only and does not constitute financial or investment advice. Trading cryptocurrencies involves risk. Always do your own research.
