Bitcoin Mining Power at Risk as Public Miners Shift to AI/HPC

At least 35 EH/s of hash rate from publicly listed Bitcoin (BTC) mining companies is expected to leave the network. Some miners are transitioning their existing equipment and power to artificial intelligence (AI) and high-performance computing (HPC) infrastructure. CoinShares' latest Bitcoin mining report states that IREN plans to exit mining by December 31, 2026, with 23.2 EH/s of installed hash rate set for conversion. Cipher may also withdraw 11.6 EH/s from mining operations by the end of 2027, targeting Odessa facilities.

CoinShares analyzed in its report that the shift toward AI/HPC among public miners is unlikely to be reversed solely by Bitcoin's price recovery. Core Scientific canceled a $41.9 million (approximately 57 billion KRW) contract for next-generation mining hardware, resulting in a payment of $41.9 million. CoinShares also noted that mining companies securing AI/HPC contracts are trading at higher enterprise value-to-sales multiples compared to traditional miners. Block also cited the CoinShares report, highlighting that Bitcoin's price recovery is unlikely to reverse the shift toward AI infrastructure.