Bitcoin miners shut down rigs as AI profits lure them away

Bitcoin’s network hashrate has dropped sharply since October, falling from 1.151 to 0.888 zetahashes per second, making mining 10 percent easier over the weekend. The decline is driven by falling bitcoin prices and a growing shift of miners toward the far more profitable AI infrastructure market. CoinShares reports that listed miners could generate up to 70 percent of their revenue from AI by the end of the year, compared to around 30 percent today. This pivot is already visible, with companies like Cango and Bitdeer selling their bitcoin reserves to fund AI-focused expansions. The latest difficulty adjustment of minus 10.09 percent is one of the largest in Bitcoin’s history, reflecting squeezed margins and miners shutting down rigs. Some analysts believe mining profitability may rebound if bitcoin prices recover, as much of the power capacity leaving mining cannot easily be redirected back.

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