Bitcoin Miners Abandon Ship for AI Compute Profits
Bitcoin miners are switching from cryptocurrency mining to artificial intelligence computing due to shrinking profits. According to CoinShares, AI compute leases bring in about $1.5 million per megawatt each year, while Bitcoin mining generates roughly $500,000 per megawatt.
The gap has prompted several publicly traded mining companies to change direction. Core Scientific paid around $42 million to cancel an order for next-generation mining machines tied to 15 exahash of mining power. Keel and Cipher have sold parts of their Bitcoin holdings to fund AI and data center expansion, with Keel stopping Bitcoin mining altogether in June.
Other companies are taking a slower path, gradually adding AI work alongside their mining business. CoinShares estimates that 35 exahash of hashpower will leave publicly listed miners by the end of the year, and doubts a Bitcoin price rebound will change this trend.