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Bitcoin Hashrate Falls as Miners Reorient Power to AI Hosting

The shift reduces mining competition and raises centralization risk while promised AI contract values remain conditional.

Overview

  • Bitcoin’s network hashrate has declined steadily since an October 2025 peak, amounting to about a 15% fall and a run of roughly 287 days of weakening mining participation.
  • Mining difficulty has been cut in successive adjustments, leaving the metric about 14% below this year’s high after roughly 10% and 5% drops in June and July respectively.
  • Publicly traded miners are converting grid connections, substations and cooling capacity for GPU and AI hosting, a move that has driven sharp share-price gains for firms such as TeraWulf, Cipher Mining and Hut 8.
  • Miners and industry reports cite more than $70 billion in potential AI hosting contracts, but those figures are prospective and face retrofit costs, counterparty and execution risk that could limit realized revenue.
  • The combined effect is a growing divergence between Bitcoin the asset and miner equities, forward markets that signal little near-term hashprice recovery, and a risk of hashrate concentration if smaller, less-efficient operators exit mining.