Bitcoin Miners Pivot Towards AI, Signing $70 Billion in Potential Deals

Bitcoin's network hashrate has been declining for nearly 287 days, marking a significant drop of around 15% since its peak in October 2025. This sustained decline is unusual and would typically be cause for concern. However, the stocks of publicly traded mining companies are surging, with gains that might make tech investors jealous.

The halving event in 2024 cut block rewards in half, severely compressing already-thin margins to the point where some operators were reportedly losing up to $19,000 per Bitcoin mined. This has led miners to explore alternative uses for their massive power infrastructure. Some companies have pivoted aggressively towards AI workloads, redirecting their capacity from SHA-256 hash computations to GPU-based computing.

Companies like TeraWulf, Cipher Mining, and Hut 8 have seen significant stock price increases, with gains ranging between 45% and 135% year-to-date through mid-May 2026. Miners have reportedly signed contracts totaling over $70 billion in potential AI deals, reflecting the intense competition for energy resources among hyperscalers, AI startups, and legacy tech companies.

The shift towards AI hosting is a fundamentally different revenue stream than mining Bitcoin, offering more predictable and higher-margin earnings. However, there are risks involved, including the possibility of cooling demand if the broader AI trade reverses or contract terms prove unfavorable.