Bitcoin Miners Abandon Crypto Roots For AI Gold Rush

Bitcoin miners are rapidly shifting away from cryptocurrency mining to focus on artificial intelligence infrastructure. According to CoinShares, publicly listed Bitcoin miners will generate approximately 70% of their combined revenue from AI infrastructure by December, up from about 30% today.

The shift follows a brutal quarter for miners, with Hashprice - the measure of daily revenue per petahash - falling to around $29, levels last seen after the April 2024 halving. Bitcoin mining gross margins have dropped to roughly 60%, down from above 90% during the 2021 bull run.

James Butterfill, CoinShares head of research, noted that AI offers structurally higher and more stable returns than mining, with cloud margins near 85%. Matthew Kimmell, investment strategist at CoinShares, said the transition could mark the end of an era for large US miners, citing thin margins and hashprice hitting bottoms.