Bitcoin Mining Hit Its Breaking Point — Now AI Is Taking Over Its Racks | US Crypto News
Skyrocketing costs and collapsing fees are forcing Bitcoin miners to transition as AI datacenters outbid them for infrastructure.Summary
The Bitcoin mining sector is facing a structural crisis, driven by soaring production costs and cratering transaction fees, according to the CoinShares Bitcoin Mining Report Q4 2025. Average cash costs to mine one BTC hit $74,600, while all-in costs reached $137,800, coinciding with hashprice averaging around $50 per PH/s/day.
A major disruption is the migration of Artificial Intelligence (AI) compute into former mining facilities. AI datacenters require similar infrastructure but generate significantly higher revenue—$10 million to $20 million per megawatt compared to Bitcoin mining's $1 million per megawatt. This economic reality has led hyperscalers like Google to secure deals with miners, effectively outbidding them for capacity.
This shift is splitting the industry into two models: megascale miners converting to AI/HPC hosting for stable, capacity-based revenue, and low-cost miners migrating to remote, stranded energy sources like flare gas. This transformation is expected to be permanent, fundamentally reshaping the business of Bitcoin mining.
(Source：BeInCrypto)