Miners Ditch Bitcoin for AI Infrastructure Amid Unsustainable Costs

Several prominent miners have been selling their Bitcoin holdings to fund their pivot into artificial intelligence (AI) and high-performance computing (HPC). Cipher Digital, a leading miner, has sold a significant portion of its Bitcoin treasury, joining other miners such as Hyperscale Data and Bitdeer. According to reports, public miners have sold over 15,000 Bitcoins since the peak of their treasuries.

Hyperscale Data recently converted 150.5 BTC into $9.6 million, leaving it with a remaining Bitcoin holding of 959 coins worth around $60.8 million. This move is part of a larger trend among miners who are struggling to maintain profitability due to the increasing costs of production.

The economic reality for miners has become unsustainable, with a weighted-average cash cost to produce one Bitcoin reaching $79,995 in Q4 2025, while the price sat at around $68,000-$70,000. This gap has led many miners to abandon their Bitcoin treasuries and invest in AI and HPC infrastructure.

Cipher Digital's CEO, Tyler Page, stated that the company planned to liquidate its remaining Bitcoin holdings by 2026 to fund its infrastructure switch. The company has already raised $3.73 billion through senior secured bond offerings to build its Barber Lake and Black Pearl campuses.