Bitcoin hashrate posts first-quarter drop for first time in 6 years as miners pivot to AI

The Bitcoin hashrate experienced its first first-quarter decline in six years, falling approximately 4% year-to-date, breaking a trend of consistent growth seen over the previous five years. This shift is attributed to deteriorating mining economics, with production costs near $90,000 while the spot price hovers around $67,000, resulting in negative margins. Consequently, many publicly listed miners are reallocating capital toward artificial intelligence and high-performance computing infrastructure, which offer higher and more predictable returns. This transition is funded by selling Bitcoin and issuing debt, leading to reduced reinvestment in mining. Although a falling hashrate might raise security concerns, the reduction in dominance by large U.S. miners—who controlled over 40% of the global hash rate—could ultimately enhance network decentralization by fostering a more geographically distributed network.

(Source：CoinDesk)