Public Bitcoin Miners Cut Hashrate Amid AI Infrastructure Growth
Vexoda Newsroom
Public Bitcoin miners reduced hashrate by 13.4% as AI infrastructure revenue grows, reflecting a shift in mining economics.
Publicly traded Bitcoin miners are reducing their mining capacity at a rate faster than the overall Bitcoin network. According to a report by BlocksBridge Consulting, the realized hashrate among a group of public Bitcoin miners fell from 368.3 exahashes per second in the fourth quarter of 2025 to 319 EH/s in the second quarter of 2026, a 13.4% decline. This reduction indicates that more operators are redirecting their electricity and infrastructure toward data centers and high-performance computing.
The contraction was even more significant when excluding Bitdeer, which continued to expand its mining operations. Without Bitdeer, the cohort's realized hashrate fell 21.2% over the six-month period, from 324.6 EH/s to 255.9 EH/s. In contrast, Bitdeer's realized hashrate increased 44% to 63 EH/s. By comparison, the Bitcoin network's average hashrate declined 10.6% over the same period, suggesting that public miners are repurposing their infrastructure at a faster rate than the overall network.
The shift in mining economics is largely driven by the growing share of revenue from non-mining activities. For instance, Core Scientific generated $136.7 million in colocation revenue during the second quarter, compared with just $27.5 million from Bitcoin mining. Similarly, TeraWulf reported $31.9 million in HPC lease revenue, compared with $12.8 million from mining. As a result, Core Scientific and TeraWulf are now generating the majority of their revenue from non-mining activities, reflecting a significant change in their business models.
This transition is not surprising, given the current state of the mining industry. The post-China mining boom, which followed the country's Bitcoin mining ban in 2021, led to a rapid expansion of mining operations in North America. However, the economics have shifted significantly since then, with weaker mining profitability and surging demand for AI infrastructure. As a result, several public miners are repurposing their sites and power capacity away from Bitcoin mining entirely, indicating a new era in the evolution of the mining sector.
The current trend has significant implications for the Bitcoin network and the mining industry as a whole. As more miners shift their focus toward non-mining activities, the overall hashrate of the network may decline, potentially leading to changes in the network's security and transaction processing capacity. Furthermore, the growth of AI infrastructure revenue may attract new investors and players to the industry, leading to increased competition and innovation in the sector.
Traders and investors should closely monitor the developments in the mining industry, as the shift toward non-mining activities may have significant effects on the price of Bitcoin and other cryptocurrencies. Additionally, the growth of AI infrastructure revenue may create new opportunities for investment and partnerships, as companies like Core Scientific and TeraWulf continue to expand their operations in this area. As the mining industry continues to evolve, it is essential to stay informed about the latest trends and developments to make informed investment decisions.
Source: Cointelegraph. Summarized and rewritten by the Vexoda Newsroom. This is market news, not financial advice.