Bitcoin Miners Sell BTC as Losses Mount | Shift to AI Contracts
Edited By
Liam Thompson
Bitcoin miners are facing significant financial losses, with an average cost of production reaching around $80,000 per coin, while the current market price hovers near $70,000. This results in a loss of $19,000 for every Bitcoin mined. As the struggles mount, many miners are pivoting to artificial intelligence, seeking alternate revenue streams.
The Grim Reality of Mining Costs
According to a recent report from CoinShares, production costs for publicly listed miners soared in the last quarter of 2025. As losses stack up, miners are opting to liquidate their Bitcoin holdings. Industry players have signed over $70 billion in high-performance computing contracts, marking a significant shift in focus.
CoreWeave and Core Scientific have locked in a $10.2 billion deal over 12 years. Meanwhile, TeraWulf and Hut 8 are also making moves, signing contracts for $12.8 billion and a $7 billion lease for AI infrastructure, respectively. This sharp pivot reflects how these miners are now operating much like data centers, effectively transforming their businesses away from crypto mining.
"What used to be side projects for some of these mining companies has flipped, leaving them as data centers that happen to still mine crypto."
Mining Companies Leave the Bitcoin Network
MARA, one of the largest public Bitcoin holders, updated its filings allowing sales from its reserve. Between March 4 and 25, it sold 15,133 BTC, totaling around $1.1 billion. As mining operations cut back, hashrate has dropped significantly from a peak of 1,160 EH/s to just 920 EH/s. This decline raises concerns about the integrity of the Bitcoin network as the companies securing it shift gears.
The Road Ahead for Bitcoin
As mining struggles escalate, some proponents are worried:
What will happen to Bitcoin if most miners continue to shift to AI?
Could an acceleration of mining exits impact the overall blockchain security?
Currently, CoinShares projects that up to 70% of revenue for some miners could eventually come from AI, up from the current 30%. Core Scientific is already at 39% AI revenue. This transformation prompts the question: If Bitcoin rebounds to $100,000, will the situation reverse?
Interestingly, while this dynamic evolves, some comments on forums express skepticism and frustration with the ongoing transitions.
One person deemed the situation "nonsense," while another expressed concern about the implications of miners leaving the sector.
Key Points
◼️ Miners lose $19,000 per Bitcoin.
△ Major deals worth above $70 billion signed in AI contracts.
▽ Hashrate has dropped significantly to 920 EH/s.
As the industry adapts, the once-negative narrative surrounding Bitcoin mining could change. However, the question remains: Can miners balancing both AI and crypto sustain their operations effectively?
Glimpses into the Future of Mining
There’s a strong chance that as Bitcoin miners increasingly pivot to AI-related ventures, we might see a drastic shift in the market's dynamics. Miners could significantly offset their losses by tapping into projected revenue sources from AI, potentially raising contributions to as high as 70% in the coming months. With ongoing discussions about blockchain safety amidst dropping hashrates, experts estimate around a 60% probability that Bitcoin’s market stability could take a hit if this trend continues unchecked. However, if Bitcoin's price rebounds to $100,000, it could incentivize miners to return, promoting a healthy balance between AI and cryptocurrency operations.
Innovations in Past Revolutions
In history, the rise of steam power during the Industrial Revolution provides an illuminating parallel. Innovators transitioned from traditional handicrafts to machine-driven production, facing skepticism from seasoned artisans. Initially, many feared that steam would jeopardize the craft, yet it laid the foundation for modern manufacturing. Similarly, Bitcoin miners are venturing into the AI space, leaving behind traditional revenue streams. Just as steam engines revolutionized production, this leap for miners could shape the future of how cryptocurrencies operate, regardless of the current skepticism surrounding the shift.