Bitcoin Price Recovery Fails to Reverse Miners' Shift Toward AI
Bitcoin's recent price recovery has reached an interesting milestone: it has almost exactly matched the estimated cash-cost line of miners, which stands at around $75,500. This figure is a backward-looking average across various mining operators with different power contracts, machines, and financing arrangements.
Despite this symmetry, it's essential to note that this price level is not necessarily a floor for Bitcoin. The cost figure only explains why a rebound in the token has improved current mining margins without reversing the industry's shift toward artificial-intelligence infrastructure.
CoinShares' second-quarter mining report estimates that at least 35 exahashes per second of computing capacity will leave the listed-miner group, which is roughly 4.7% of the network's total hashrate. This exit is not easily reversible, as seen in Core Scientific's $41.9 million payment to cancel an order for next-generation mining hardware.
Keel, formerly Bitfarms, stopped mining on June 29, according to CoinShares. IREN aims to complete its transition from Bitcoin mining by December 31, while Cipher Digital is expected to leave the industry by the end of 2027. TeraWulf will wind down its remaining 145 megawatts.
The shift toward AI infrastructure is driven by more attractive economics: CoinShares estimates that annual profit from AI equipment can reach around $1.5 million per megawatt, compared to about $500,000 from Bitcoin mining. However, this transition requires significant capital investment and long-duration leases, making it harder for miners to redirect their operations.