Public bitcoin miners reduced their hashrate by 75 exahash (EH/s) during the first half of 2026, corresponding to approximately $1.5 billion in mining hardware at an assumed acquisition price of $20 per terahash. The figure excludes additional costs for facilities, electrical equipment, cooling systems, and installation.
During the same period, miners' reported high-performance computing and AI revenue rose 52% quarter over quarter, reflecting a broad redirection of computational capacity away from bitcoin mining. This transition has created a significant accounting challenge for the industry.
Write-Downs Mount Across the Sector
A review of 12 publicly tracked companies identified approximately $1.1 billion in asset impairments and held-for-sale markdowns during the first half of 2026. IREN and Core Scientific accounted for nearly 89% of the total impairment charges.
IREN's experience illustrates the scale of the adjustment. The company reached 50 EH/s in June 2025 but recorded roughly $695 million in impairments and held-for-sale markdowns during January–June 2026, with substantial charges associated with mining assets displaced by AI conversions.
Cipher's Black Pearl facility, which began mining in mid-2025, was converted to high-performance computing by year-end. Cipher recorded a $96.1 million markdown on Black Pearl's mining machines despite the same equipment generating $57.9 million in revenue during 2025—a compressed timeline reflecting the accelerated pivot.
Financing Pressures Emerge
While write-downs are noncash charges when recognized, companies continue to face cash obligations during facility conversions. TeraWulf generated approximately $53 million in HPC leasing revenue during the first half while paying $131 million in cash interest across the company, illustrating the gap between the revenue ramp and financing costs.
Access to capital is tightening. According to reporting by The Information, Société Générale and SMBC have become more selective about data center financing, while MUFG is also stepping back from the sector. More restrictive lending could force miners to accept tougher terms, seek additional equity funding, or slow their buildout schedules.
The Federal Reserve raised its benchmark interest rate range by a quarter point to 3.75%–4%, adding pressure on new financing and refinancing arrangements even as existing fixed-rate debt retains its terms.
Regulatory and Political Headwinds
Data center projects face widening political scrutiny over electricity demand, water consumption, and effects on household utility bills. New York announced a pause on state environmental permits for new hyperscale projects, while Massachusetts introduced additional approval requirements and Chicago's mayor proposed a year-long moratorium.
Uncertainty over project approvals and energy delivery can extend timelines and create contractual complications. Oracle's Project Jupiter, while not a mining operation, highlighted this risk when New Mexico's land commissioner rejected a request to route part of the project's natural-gas pipeline through state trust lands, potentially delaying the campus opening and affecting financial obligations.
For miners completing conversions, the return on AI infrastructure will depend not only on revenue per megawatt but also on the value recovered from displaced mining equipment, the cost of site rebuilding, and how long lenders must be paid before new capacity begins generating income.
