Bitcoin Miners Shift to AI Infrastructure Amid Declining Hash Prices and Competition

Bitcoin Miners Transitioning to AI Infrastructure: A Major Industry Transformation

The Bitcoin mining industry is undergoing a fundamental shift, with at least eight publicly traded mining companies announcing plans to partially or fully transition to AI infrastructure over the past 18 months. These companies include Bitfarms, Core Scientific, Riot Platforms, IREN, TeraWulf, CleanSpark, Bit Digital, MARA Holdings, and Cipher Mining. The hash price, a key metric for mining revenues, has dropped from around $55 per petahash per second in Q3 2025 to approximately $35 in early December, marking a decline of about 35 percent. Concurrently, Bitcoin is trading about 30 percent below its all-time high of $126,210 from October 2025.

“The transition to AI infrastructure is not just an opportunistic expansion; it is a strategic necessity for the survival of an industry facing declining margins and increasing competition.”

Source: Crypto Valley Journal

Bitfarms' Radical Strategy Shift

In November 2025, Bitfarms announced its most extensive transformation yet, planning to exit Bitcoin mining entirely by 2027 and focus solely on AI data centers. The transition will begin at their Washington site, where an 18-megawatt mining facility will be converted into a state-of-the-art AI data center with Nvidia GPUs by December 2026. This new infrastructure will support workloads of up to 190 kilowatts per rack with advanced liquid cooling systems. The company has secured a binding agreement worth $128 million with a major U.S. infrastructure provider, ensuring the entire supply chain is secured.

Despite the potential for greater net operating income than what the company has ever achieved with Bitcoin mining, the announcement led to an almost 18 percent drop in stock price to $2.60, reflecting market skepticism about exiting their core business. Bitfarms reported a net loss of $46 million in Q3 2025, highlighting the financial urgency of this strategic pivot.

Source: Crypto Valley Journal

Core Scientific and Riot Platforms Embrace Hybrid Strategies

Core Scientific is adopting a differentiated approach by positioning itself as a bare-metal AI infrastructure provider, offering H100 cluster rentals for AI startups and research labs. The company has signed a series of 12-year contracts with CoreWeave, providing over 200 megawatts of GPU hosting capacity for high-performance computing operations, with total revenues from these agreements estimated at over $6.7 billion. The first contract alone is expected to generate more than $3.5 billion. Additionally, CoreWeave announced plans to acquire Core Scientific for approximately $9 billion, with the deal expected to close in Q4 2025.

Meanwhile, Riot Platforms is developing around 112 megawatts of new capacity at its Corsicana data center campus in Texas, with two-thirds of the complex being repurposed for AI and high-performance computing. CEO Jason Les emphasized that Bitcoin mining serves as a tool to unlock power capacities, which will now be utilized for a new era of computing power.

Source: Crypto Valley Journal

Libya's Subsidized Energy Fuels Bitcoin Mining Boom

Libya's cheap and subsidized electricity has led to a significant increase in Bitcoin mining activities within the country. The Cambridge Centre for Alternative Finance reported that Libya accounted for approximately 0.6% of the global Bitcoin hash rate in 2021, placing it ahead of other Arab and African nations, and even some European economies. However, authorities have begun cracking down on Bitcoin mining activities that have overloaded the power grid.

The country's electricity prices are among the lowest globally, estimated at about $0.004 per kilowatt-hour, due to high state subsidies for fuels and low tariffs. Sami Radwan, an economic analyst in Libya, noted, “Electricity is practically free for most consumers, and diesel is heavily subsidized. It is not surprising that both Libyan and foreign actors are rapidly establishing mining operations to exploit these conditions.”

Source: Cryptopolitan

Russia Patents Electric Vehicle Charging Station with Cryptocurrency Mining

A Russian company has patented an electric vehicle charging station that generates cryptocurrency. The firm, based in St. Petersburg, aims to provide EV owners with a way to earn digital cash while charging their vehicles. The developers estimate that the mined cryptocurrency could partially cover the costs of charging the electric vehicle, which is becoming increasingly expensive.

However, experts question the legal and economic feasibility of the project, as the profitability calculations are based on a low electricity price of 6.2 rubles per kWh, while actual costs at public charging stations can be significantly higher. The project faces challenges, including securing investment and ensuring compliance with new Russian mining regulations.

Source: Cryptopolitan

Sources:

• Bitcoin-Miner wechseln zu KI-Infrastruktur: Die grosse Transformation der Branche
• Irans Bitcoin-Mining-Industrie: Einblick in den fünftgrößten Betrieb der Welt inmitten von Sanktionen und Energiekrise
• Neues Bitcoin -Mining: Fleet Mining revolutioniert die Zukunft der Miner – jetzt anmelden und 100 $ erhalten
• Libyens subventionierte Energie löst Bitcoin -Mining-Explosion aus
• In Russland wurde ein Patent für Kryptowährungs-Mining mit einem Ladegerät für Elektrofahrzeuge angemeldet.