The recent developments in the mining industry are truly fascinating. Bitcoin miners are shifting one after another to AI infrastructure. They were previously known for their HODLing strategies, but the situation has changed dramatically now.



The reason is simple. The mining profit margin, which reached up to 90% during the 2021 bull market, has disappeared. Increased competition, rising electricity costs, and price compression have made Bitcoin mining unsustainable on its own. Additionally, the Bitcoin price has fallen significantly from its October all-time high of approximately $77,950.

The data centers owned by miners are ideal for AI computing. That’s why many publicly listed mining companies are transforming into AI infrastructure companies.

Specifically, what’s happening is that IREN has sold all the way down to 0 BTC. TeraWulf is holding only 15 units while adopting a flexible strategy. Cipher Digital is particularly symbolic, having completely transitioned from Cipher Mining. They sold a 49% stake in three mining joint ventures for about $40 million, reducing their holdings from 2,284 BTC to 1,500 BTC.

Riot Platforms sells all of its monthly production. They sold $200 million worth of Bitcoin in just the last two months of 2025. They currently hold 18,005 BTC, down from their peak of 19,368 BTC.

Hut 8 has explicitly stated that Bitcoin is no longer the focus of their long-term strategy. Core Scientific sold $175 million worth of Bitcoin, sharply reducing holdings from 2,537 BTC to around 630 BTC. Bitdeer has reduced its holdings to zero. Some companies, like Bitfarms, have even declared that they are “no longer Bitcoin companies.”

This industry-wide shift is not just a temporary trend but a structural change. The profitability of mining operations has fundamentally changed. With new growth opportunities in AI infrastructure, shifting capital in that direction is a rational business decision.

Miners are now treating Bitcoin not as a reserve asset but as a funding tool. They are using part of their holdings as collateral or selling assets to invest in AI expansion. This trend is likely to continue for the foreseeable future.
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