Bitcoin mining revenue hits historic low as infrastructure is sold to AI giants permanently altering the network’s security
Bitcoin miners face historic low revenue due to price drops, forcing infrastructure sales to AI firms, which threatens network security centralization.Summary
Bitcoin mining revenue has plummeted to historic lows, with the price dropping over 38% from its peak, causing miners to operate at a cash loss, especially older hardware.
This financial strain is leading to a 12% decline in the Bitcoin hashrate since November. Crucially, the infrastructure used for mining—including power contracts and grid connections—is being permanently sold to hyperscale AI compute providers like CoreWeave and Hut 8, who offer more lucrative, long-term contracts.
This pivot to AI permanently reallocates hashpower away from securing the Bitcoin network, raising concerns about centralization and lowering the marginal cost of a potential attack. The industry must now decide how much it is willing to pay, potentially through higher fees or new incentives, to keep hashpower dedicated to Bitcoin over competing AI demands.
(Source：CryptoSlate)