A growing number of Bitcoin miners are moving away from their traditional business to focus on artificial intelligence (AI) computing. New research by CoinShares, a digital asset firm known for its industry analytics, reveals that AI compute leases currently generate significantly higher revenues compared to mining Bitcoin.
AI compute outpaces Bitcoin mining returns
According to the CoinShares report, leasing infrastructure for AI operations typically brings in about $1.5 million per megawatt each year. This figure is roughly three times greater than the $500,000 per megawatt that miners earn from Bitcoin mining.
These earnings differentials have prompted several publicly listed mining companies to reevaluate their strategies. Some firms are exiting Bitcoin mining entirely, while others are integrating AI compute services alongside existing mining operations.
AI leasing now produces three times as much revenue per megawatt as Bitcoin mining, driving industry players to ramp up their focus on AI infrastructure.
Core Scientific, a major Bitcoin mining company, recently paid approximately $42 million to cancel its order for next-generation mining hardware. The order had committed the company to 15 exahash of mining capacity, which it is now scrapping in favor of alternative business lines.
| Earnings Source | Annual Revenue per MW |
|---|---|
| AI Compute Lease | $1,500,000 |
| Bitcoin Mining | $500,000 |
Keel, formerly known as Bitfarms, and Cipher Mining have both liquidated portions of their Bitcoin holdings to expand AI and data center infrastructure. Keel fully exited the Bitcoin mining business in June, and IREN has announced plans to do the same by December 2026.
Other operators, such as Mara Holdings, are transitioning more gradually, adding AI services while maintaining existing mining operations.
Mini dictionary: Mara Holdings, previously known as Marathon Digital Holdings, is a US-based cryptocurrency mining company focused on Bitcoin and now expanding into AI infrastructure.
CoinShares estimates that by the end of 2026, up to 35 exahash of mining power will leave publicly listed mining companies. The firm pointed to long-term AI facility leasing agreements, some lasting up to 15 years, as a factor making a return to exclusive Bitcoin mining unlikely—even if Bitcoin prices rebound.
Profit squeeze drives transformation
Rising costs have made Bitcoin mining less attractive. CoinShares reported that the average cost to mine a single Bitcoin reached $75,500 in the second quarter of 2026.
During the same period, Bitcoin’s price dropped as low as $58,400, pushing mining operations into negative territory for many participants. Monthly mining revenues have plunged from about $60 million at the end of 2025 to around $20 million by mid-2026.
| Period | Average Mining Revenue | BTC Price Low | Cost to Mine One BTC |
|---|---|---|---|
| Late 2025 | $60 million | >$125,000 | – |
| Mid-2026 | $20 million | $58,400 | $75,500 |
The decline in profitability has led to reduced hashrate across the network, with total mining power falling by more than half as many operators scale back or exit the industry.
CoinShares noted that the current reduction in hashrate resembles similar downturns following historical Bitcoin halving events. The company suggested hashrate could recover ahead of the next halving, but this view is not universally accepted.
Some analysts warn that mining may have already peaked, with further declines possible as block rewards are cut in 2028.
Economist Saifedean Ammous underscored that the upcoming decrease in block rewards from 3.125 to 1.56 Bitcoin in 2028 could make mining even less viable. Mara Holdings CEO Fred Thiel has expressed related concerns about the future of mining-only business models, given the shrinking returns.
For now, AI compute services appear to offer a more profitable path for miners with access to substantial power resources. Limitations on new data center construction and the value of existing energy hookups are shaping this industry transition.
