Bitcoin miners pour billions into AI – but the pivot could leave them regretting it within a year
Bitcoin miners are shifting power, capital, and data-center assets toward AI because Bitcoin mining profitability is near historic lows. BTC has fallen sharply from its peak, while the April 2024 halving, weak fees, and high network competition have cut miner revenue and pushed hashprice near breakeven for older rigs. Firms like Core Scientific are already prioritizing colocation and high-density computing, where margins are far better than self-mining. Industry estimates suggest public miners have announced over $70 billion in AI/HPC deals. The move is risky, though. Bitwise’s André Dragosch argues AI demand may take longer to scale than investors expect, while Bitcoin could be nearing a recovery. That could leave miners locked into expensive, long-term AI infrastructure just as mining economics improve again. AI facilities also cost far more per megawatt than Bitcoin sites, so the pivot requires much larger capital commitments.
