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Bitcoin Miners Increasingly Turn to AI as Fees Hit Lowest Level Since 2019
The revenue generated by Bitcoin miners from transaction fees has fallen to its lowest level since 2019. Daily total earnings for miners are currently around $25 million, a level last seen during previous bear markets, according to data from Glassnode and Capriole Investments. This indicates that the pressure on miners is structural rather than merely cyclical, prompting many publicly traded miners to sell their Bitcoin holdings to finance a shift towards AI computing.
"The revenue from transaction fees for Bitcoin is collapsing, block rewards are continuously halved, and the demand for AI computing is skyrocketing. It’s no wonder that every publicly traded Bitcoin miner is moving away from Bitcoin towards AI." - Charles Edwards, Founder of Capriole Investments
In the first quarter of 2026, publicly traded miners sold a record 32,000 BTC, surpassing the total sales for the entire year of 2025. This shift is largely attributed to the Bitcoin halving in April 2024, which reduced the block subsidy to 3.125 BTC, while transaction fees have nearly disappeared. Despite the Bitcoin price being nearly $63,000, miners are earning the same amount in USD as they did when Bitcoin was trading at much lower levels.
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Key Takeaways:
- Bitcoin miners' daily earnings are at $25 million, similar to levels seen in past bear markets.
- Publicly traded miners sold 32,000 BTC in Q1 2026 to finance AI expansion.
- Transaction fees have dropped significantly, impacting miner revenues.
Cipher Mining Secures $810 Million for AI Data Centers
Cipher Mining has secured $810 million in fresh bonds to accelerate its transition from Bitcoin mining to AI infrastructure. The stock price surged by 8% following the announcement, reflecting investor confidence in the company's strategic pivot. The funds will primarily be used to complete the construction of the Stingray data center, with a portion allocated to repaying equity contributions of approximately $62 million.
The company is focusing on specialized data centers for artificial intelligence rather than solely on cryptocurrency mining. Cipher Mining has already established long-term lease agreements with major cloud providers, which are expected to drive future revenue growth as demand for computing power continues to rise globally.
Key Takeaways:
- Cipher Mining raised $810 million to fund AI data centers.
- The stock price increased by 8% following the funding announcement.
- Long-term partnerships with cloud providers are expected to boost future revenues.
Bitcoin Sends Rare Miner Signal Indicating Potential Market Bottom
Bitcoin miners have entered a capitulation phase, with profit margins dropping below 5%, a pattern historically associated with market bottoms. On-chain data indicates increasing pressure in the mining sector, with several indicators reflecting levels last seen during previous cyclical lows. A trader noted that the current conditions present a clear signal for accumulation, despite expectations of a deeper market low before a potential turnaround.
Charles Edwards from Capriole Investments estimates that the average production costs for miners are around $61,200, with electricity costs at approximately $48,965, resulting in a margin of about 4.67%. This situation suggests that miners are operating near break-even, which historically has rewarded patient buyers rather than sellers.
Key Takeaways:
- Bitcoin miners are experiencing a capitulation phase with profit margins under 5%.
- Current market conditions may signal a potential bottom for Bitcoin prices.
- Miners are facing increasing pressure, with daily earnings per terahash declining.
Sources:
- Bitcoin-Miner setzen verstärkt auf KI, Gebühren erreichen Tiefstand seit 2019
- Bitcoin-Miner setzen verstärkt auf KI, Gebühren erreichen Tiefstand seit 2019
- Cipher Mining Aktie: 810 Millionen für Stingray bis 2031
- Bitcoin sendet seltenes Miner-Signal, das zuletzt an früheren Bärenmarkttiefs zu sehen war
