Bitcoin miners are increasingly abandoning cryptocurrency mining in favor of AI compute leases, a shift that shows little sign of reversing despite potential price recoveries. According to a CoinShares report, AI compute leases generate approximately $1.5 million per megawatt annually, compared to $500,000 per megawatt for Bitcoin mining—a threefold difference in profitability.
The transition accelerated during 2026 as Bitcoin's price fell sharply. The average cost to mine Bitcoin reached $75,500 in the second quarter of 2026, while the asset's price dropped to $58,400, making mining economically unviable for many operators. Bitcoin mining revenue declined to $20 million in mid-2026 from $60 million in late 2025.
Major Miners Exit or Reduce Operations
Several publicly listed mining companies have taken concrete steps to exit or reduce Bitcoin operations. Core Scientific paid $41.9 million to terminate mining hardware contracts. Keel, formerly known as Bitfarms, ceased Bitcoin mining entirely in June, while Cipher dumped part of its Bitcoin reserves to fund data center buildouts. IREN announced plans to exit by December 2026, and other operators like Marathon Digital have begun pivoting toward AI ventures.
CoinShares estimates that 35 exahashes per second of hashpower will leave listed miners by the end of the year. Some companies have committed sites to 15-year AI compute leases, suggesting a long-term commitment to the transition.
Price Recovery May Not Reverse the Shift
CoinShares analysts believe that a Bitcoin price rebound is unlikely to reverse the mining sector's pivot to AI. Strict regulations around AI and data center development have made energy-intensive sites scarce assets, while AI compute offers more stable and predictable returns compared to Bitcoin's volatile mining revenue.
The hashrate has declined over 50 percent as miners have partially or fully exited the space. While some analysts view this decline as consistent with post-halving patterns that could recover before the next halving event, others dispute whether Bitcoin mining will return to previous growth levels. Economist Saifedean Ammous has argued that declining block rewards, which will fall from 3.125 Bitcoin to 1.56 Bitcoin in 2028, may make the sector structurally less attractive going forward.
