The Bitcoin mining landscape is undergoing a significant transformation as miners adapt to changing economics. With production costs near $90,000 per bitcoin and the spot price closer to $67,000, margins have become negative for many publicly listed miners.
In response, these firms are allocating capital to AI infrastructure, where returns are higher and more predictable. This shift is being funded through debt issuance and bitcoin sales, reducing reinvestment into bitcoin mining.
As a result, hashrate growth is becoming increasingly sensitive to the cryptocurrency's price, with weaker prices likely to trigger further declines as smaller operators exit the market.