The bitcoin mining industry is undergoing a dramatic transformation. Publicly listed miners spent $79,995 on average to produce one bitcoin in Q4 2025, while the price remained around $70,000. This economic imbalance has led to a major pivot toward AI infrastructure.
Over $70 billion in AI and high-performance computing contracts have been announced across the sector. Core Scientific, TeraWulf, and Hut 8 are among the companies leading the shift, with AI revenue expected to make up 70% of their income by 2026.
To fund this transition, miners are selling BTC treasuries. Core Scientific sold 1,900 BTC worth $175 million in January, and Bitdeer eliminated its entire BTC reserve in February.
The shift raises concerns about network security, as hashrate has declined from 1,160 EH/s to 920 EH/s. Miners with AI contracts now trade at higher valuations, reflecting market confidence in the new direction.
