Mining Giants Abandon Bitcoin for AI Data Centers

The mining industry has seen a significant shift in recent months, as several major companies have reduced their Bitcoin (BTC) mining operations and turned to alternative uses for their infrastructure. According to an analysis of publicly listed mining companies, the realized hashrate decreased by 21.2% in the second quarter of 2026 compared to the previous quarter.

Several companies, including Core Scientific ($CORZ), TeraWulf, and Bitdeer, have announced partnerships with AI data center providers and leasing contracts for large amounts of power. For example, Core Scientific has a 15-year agreement with AMD that includes up to 2.5 GW of infrastructure, while TeraWulf has secured a 20-year leasing contract with Anthropic for approximately 401 MW of IT load.

These partnerships and leases have led to significant increases in the companies' AI-related revenues, with some exceeding their mining revenues. However, investors should be cautious when evaluating these contracts, as there may be discrepancies between announced deals and actual revenue recognition.

The shift towards AI data centers is driven by the fact that both industries require large amounts of power, land, and cooling infrastructure. By repurposing their existing assets, companies can generate additional revenue streams while also reducing their environmental impact.