AI-Driven Shift Puts Bitcoin Mining on the Back Foot
Bitcoin mining as a profitable business model is becoming increasingly challenging due to the rise of AI. In October 2025, the Bitcoin network's hashrate reached 1.1 ZH/s but has since fallen to around 900 EH/s several times.
The drop in hashrate and mining difficulty - which fell by 11.16% in February 2026 and another 10.09% in June - indicates that enough miners have switched off, making it necessary for the Bitcoin network to make mining easier for those still operating.
Largest mining companies are finding better returns elsewhere, such as renting out high-powered computing infrastructure for AI and cloud computing. For example, Core Scientific reported a negative 56% gross margin from self-mining in the second quarter, while its data-center colocation business generated nearly $80 million in gross profit.
The competition between AI operators and Bitcoin miners is not about interchangeable hardware but rather access to reliable electricity, land, infrastructure, and capital. Many mining companies secured suitable sites before AI intensified competition for them, which can now be more valuable as AI data centers than as mining facilities.