Bitcoin Miners Suffer $1.5B Hardware Loss in AI Pivot
The Bitcoin network has witnessed a significant shift in recent months, with many public miners redirecting their power towards Artificial Intelligence (AI) infrastructure. According to a report, this pivot has resulted in the loss of approximately $1.5 billion in equivalent hardware investment, assuming an acquisition price of $20 per terahash (TH/s). This represents a significant portion of the $5 billion in equipment and infrastructure spending across the preceding reporting cycle, as reported in a March 2025 issue of Miner Weekly.
The report highlights the case of Cipher's Black Pearl facility, which began mining in mid-2025 and was converted to high-performance computing by year-end. The facility's mining machines generated $57.9 million in revenue during 2025, but the company recorded a $96.1 million markdown specifically on these machines. This comparison illustrates the compressed timetable for mining projects, with some sites preparing for a different purpose even before their first several months of operation.
IREN, another major player, reached 50 EH/s in June 2025 and recorded roughly $695 million in impairments and held-for-sale markdowns during January-June 2026. This is a significant charge, and the report notes that not every charge is an AI conversion cost. Core Scientific attributed its major mining impairment to deteriorating mining economics, while the broader total includes other asset categories as well.
The report also highlights the challenges faced by miners in accessing the next round of funding. According to an excerpt from The Information's reporting, Société Générale and SMBC have become more selective about data center financing, while MUFG is also stepping back. This could mean tougher terms, additional equity funding, or a slower buildout for miners midway through conversions.