Bitcoin Miners Abandon Crypto Roots for Artificial Intelligence
Publicly listed Bitcoin (BTC) miners are making a significant pivot towards artificial intelligence infrastructure. According to CoinShares, by December, they will generate around 70% of their combined revenue from AI, up from about 30% currently.
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.
Over $70 billion in cumulative AI and high-performance computing contracts have been announced across the public mining sector. Companies such as Core Scientific, TeraWulf, and Hut 8 have moved aggressively into this space. For example, Core Scientific expanded its CoreWeave deal to $10.2 billion over 12 years.
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.