Bitcoin Price Recovery Unlikely to Bring Back AI-Focused Miners, CoinShares Says
AI Transition in Mining Deemed Permanent by CoinShares
CoinShares has stated that Bitcoin miners who moved their operations to artificial intelligence (AI) infrastructure are unlikely to switch back, even if Bitcoin prices recover.
This conclusion comes from CoinShares' Q2 bitcoin mining report, which highlights the economic advantages of AI over Bitcoin mining for these companies.
Key Figures from the Report
- Listed miners produced Bitcoin at an average cash cost of about $75,500 in the second quarter of 2026.
- At least 35 exahashes per second (EH/s) of computing power is scheduled to leave listed miners, representing roughly 4.7% of the Bitcoin network's total hashrate of 750 EH/s.
- AI mining generates profits of approximately $1.5 million per megawatt, compared to around $500,000 per megawatt from Bitcoin mining.
What CoinShares' Q2 Mining Report Reveals
The report, authored by Luke Nolan, explains why the shift to AI is difficult to reverse. For instance, Core Scientific paid nearly $42 million to cancel an agreement for 15 EH/s of next-generation mining hardware. Additionally, several operators have committed sites to AI and high-performance computing leases lasting up to 15 years.
The average hash price, which is revenue miners earn from a unit of computing power, fell to an all-time low of $27.70 per PH/s per day in June. While Bitcoin's recovery to around $77,000 has improved hash price to about $38 per PH/s per day, CoinShares expects miners already committed to AI to stay on that path.
Miners Exiting Bitcoin for AI
Confirmed data shows specific miners are transitioning or have exited Bitcoin mining. Keel, formerly Bitfarms, stopped mining entirely in June. IREN plans to complete its exit by the end of 2026, and Cipher Digital is likely to leave the mining sector by the end of 2027. TeraWulf is also winding down its remaining 145 megawatts of mining power.
Why This Matters for the Mining Industry
This trend affects the Bitcoin network's computing power and the overall mining economics. As miners leave for AI, it reduces the hashrate dedicated to Bitcoin, while AI offers higher profit margins per unit of power used.
Upcoming Changes for Miners
Some miners have announced timelines for their transitions. IREN aims to exit Bitcoin mining by the end of 2026, and Cipher Digital targets the end of 2027 for its departure. TeraWulf is actively reducing its mining capacity.