Bitcoin Mining Industry in Crisis as Investors Flock to AI

A recent shift in investment focus from cryptocurrency to artificial intelligence (AI) has significant implications for the mining industry of Bitcoin, the world's largest cryptocurrency. According to data, in 2025, AI startups raised $22 billion while crypto raised $30 billion, with a single AI round exceeding the entire year's crypto fundraising.

The migration towards AI is not subtle, with investors pivoting from crypto to AI projects. The NASDAQ has pumped 60% in two years, driven largely by AI names. Meanwhile, Bitcoin has bled as miners struggle to compete with AI hosting's higher profitability.

Bitcoin mining generates between $60 and $130 in revenue per megawatt of electricity, while AI hosting generates between $200 and $500 for the same power. The enterprise value per megawatt for Bitcoin miners sits around $4.5 million, compared to $30 million for AI data centers.

As a result, many mining companies are switching to AI hosting, including Core Scientific, Hut 8, and Cipher Mining. Even Jihan Wu, the godfather of Bitcoin mining, has announced that his company Bitdeer is selling all its Bitcoin miners and moving entirely to AI infrastructure.