Bitcoin Miners Ditch Crypto for AI: A Shift Amid Profit Struggles

Big Bitcoin Miners Abandon Mining for AI Computing

Bitdeer, a Singapore-based mining company, has completely liquidated its Bitcoin reserves, selling 189.8 freshly mined coins and 943.1 from its treasury, leaving it with zero Bitcoin holdings. This drastic move comes as the mining industry faces severe profitability challenges, with the Bitcoin reward per block halved to 3.125 since April 2024, while mining difficulty has reached record levels. The hash price has plummeted from $55 in summer 2025 to under $30 per petahash per day, leading many operators to find that their electricity costs exceed their earnings.

“The mining industry is turning its back on cryptocurrency,” stated the report from Business Punk.

Despite producing 668 Bitcoin in January, a 430% increase year-over-year, Bitdeer sold all of it immediately. The company, founded by Bitmain co-founder Jihan Wu, holds the highest self-managed computing power among publicly traded miners at 63.2 exahash per second, surpassing Marathon Digital. However, the management has decided to pivot towards artificial intelligence (AI) computing, which offers significantly higher profit margins.

AI hosting can generate between $10 million and $20 million in annual revenue per megawatt of computing power, compared to just around $1 million from Bitcoin mining. Bitdeer is advancing its AI expansion with NVIDIA GB200 NVL72 systems in Malaysia and is converting several sites in the USA and Europe from crypto mining to AI data centers, funded by convertible bonds worth $325 million and a capital increase of $43.5 million.

In summary, the mining sector is undergoing a significant transformation, with major players like Bitdeer shifting focus to AI due to the declining profitability of Bitcoin mining.

TeraWulf's Strategic Shift to AI Infrastructure

TeraWulf has recently accelerated its transition from Bitcoin mining to AI and high-performance computing by acquiring energy and data center locations in Kentucky and Maryland. This strategic pivot is expected to reshape the company's role in digital infrastructure and AI-focused computing services. Investors are keenly awaiting the upcoming quarterly and annual results to gauge how quickly TeraWulf can scale its AI-related revenues.

The company forecasts revenues of $920.8 million and profits of $157.9 million by 2028, necessitating an annual revenue growth of 85.6%. However, high expenditures and balance sheet strain remain significant risks. The recent FluidStack hyperscale hosting agreement, supported by Google, is crucial for TeraWulf's plans to fill new capacities with long-term AI workloads.

In conclusion, TeraWulf's shift towards AI infrastructure represents a critical juncture for the company, with potential for substantial growth if executed successfully.

Engie Considers Bitcoin Mining Integration in Brazil

Engie SA, a partially state-owned French energy company, has launched its largest solar plant, Assú Sol, in northeastern Brazil, which has a capacity of 895 megawatts. The plant is situated in a sun-rich area but suffers from limited transmission capacity, leading to frequent production curtailments. Engie's Brazilian CEO, Eduardo Sattamini, indicated that the company is exploring potential buyers for excess energy, including Bitcoin mining operations, which can flexibly adjust their output based on supply and demand.

Brazil recognizes cryptocurrencies as assets, and Bitcoin mining is legal, with a bill for a state Bitcoin reserve already in consideration. Engie's potential integration of Bitcoin mining aims to monetize otherwise wasted energy, improve site profitability, and contribute to grid stability. However, implementing such a project would take several years.

In summary, Engie's exploration of Bitcoin mining as a solution for excess energy production highlights the growing intersection of renewable energy and cryptocurrency in Brazil.

Solo Bitcoin Miner Hits Jackpot with $75 Investment

A solo Bitcoin miner recently turned a $75 investment in rented hash power into a block reward worth over $200,000 by validating block 938,092. This miner utilized 1 petahash per second of cloud computing power through CKPool, achieving a remarkable 2,600-fold return on investment. Despite the low probability of success, solo mining is becoming more common as demand-driven hash rate rental models lower entry barriers.

In the past year, 21 solo miners have successfully validated blocks, earning a total of 66 BTC, indicating a 17% increase in solo blocks found compared to the previous year. The rise of on-demand hash rate rental has transformed solo mining from a resource-intensive endeavor into a more accessible opportunity for individuals.

In conclusion, this event underscores the potential for significant returns in Bitcoin mining, even for individual miners leveraging cloud services.

Cipher Mining's Strategic Shift Towards AI Data Centers

Cipher Mining is undergoing a fundamental transformation, shifting its focus from Bitcoin mining to operating infrastructure for artificial intelligence and high-performance computing (HPC). This strategic pivot is gaining attention as the company aims to leverage its energy infrastructure expertise in the growing AI sector. The market is now closely monitoring the progress of new infrastructure projects, particularly at the Barber Lake and Black Pearl sites.

Cipher Mining plans to utilize funds from its existing Bitcoin holdings to finance the development of its HPC infrastructure. The company has indicated it may sell its crypto assets entirely to support necessary reinvestments. This shift comes amid increasing network difficulties and fluctuating energy costs that pressure profitability in traditional mining.

In summary, Cipher Mining's strategic redirection towards AI infrastructure reflects the broader industry trend of adapting to changing market conditions and technological advancements.

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