The Bitcoin (BTC) network hash rate is currently about 50% below its theoretical growth trajectory after six months of decline, as more and more miners redirect their computing power and investments to much more lucrative AI infrastructure.
Key points:
Bitcoin’s hash rate is currently about 50% below its trend after its first six-month decline since the 2021 ban on mining in China.
CoinShares estimates that compute dedicated to AI could generate about $1.5 million in annual revenue per megawatt, compared with roughly $500,000 for Bitcoin mining.
A sustained increase in the price of Bitcoin could improve mining profitability, even if some operators have already deployed their infrastructure for AI.
Bitcoin hashrate
Digital asset manager CoinShares said, in its second-quarter mining report, that Bitcoin’s hashrate is about 50% below the expected growth trajectory. This is the first network pullback over six consecutive months since the ban on mining in China in 2021, even though the report notes that similar corrections have already been observed after previous halvings.
Production costs remain high despite weakened competition: the volume-weighted average cash cost excluding taxes for listed miners reached approximately $75,500 per Bitcoin in the second quarter. Bitcoin closed the period at $58,400, leaving several operators close to, or even below, their cash break-even threshold.
Core Scientific highlights the magnitude of the shift: the group spent $41.9 million to cancel an order for approximately 15 EH/s of next-generation mining equipment from Block’s Proto division. The company is now prioritizing converting its sites into data centers, while other miners are reducing their exposure to Bitcoin or redirecting their electrical power to high-performance computing.
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Outlook from CoinShares
Luke Nolan, the author of the report, believes that publicly listed miners are positioning themselves for an “especially lucrative structural tailwind” in artificial intelligence, rather than abandoning Bitcoin due to any network failure. He also points out that tightening the requirements for setting up new data centers in the United States increases the value of sites that already have electrical capacity and suitable infrastructure.
CoinShares estimates the potential annual profit from AI computing at around $1.5 million per megawatt, compared with nearly $500,000 for Bitcoin mining.
The report nevertheless notes that a sustained rise in the price of Bitcoin could “radically change this equation” and prompt some operators to redirect part of their capacity toward mining.
The current contraction is the first six-month decline in hashrate since the ban on mining in China in 2021, but CoinShares notes that deviations similar to the trend have already been observed in prior post-halving cycles. The hashrate has already rebounded from its early-2026 lows, while the next Bitcoin halving is expected in 2028.
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