Bitcoin hashrate slips 17% off record as miners chase AI revenue

Bitcoin's network hashrate has fallen 17% below its all-time high as publicly listed miners redirect power and capital toward artificial intelligence data centers, CryptoQuant data shows.

"This is the least talked about, concerning Bitcoin development in 2026," Charles Edwards, founder of hedge fund and AI platform Capriole Investments, said, noting the trend accelerated since April.

Hashrate eased from a late-2025 peak above one zettahash per second to a range closer to 850 to 920 exahashes per second through the summer, with mining difficulty down as much as 19.9% below its own record as of early August. Public miners sold a record 32,000 BTC in the first quarter, more than across all four quarters of 2025 combined, as many raised cash rather than expand hashrate into a market where mining had turned unprofitable.

The pivot is reshaping the sector's revenue mix. Research firm CoinShares projects listed miners could generate as much as 70% of revenue from AI and high-performance computing work by the end of 2026, up from roughly 30%. Hut 8's contracted AI infrastructure portfolio alone has grown to $26.6 billion, and cumulative AI and HPC contracts across the public mining sector now exceed $70 billion.

Miners Become AI Landlords

Mining facilities already come with the two things AI data centers need most: cheap electricity access and existing grid connections, making conversion faster than building new infrastructure from scratch. Hut 8, Core Scientific, TeraWulf and IREN have signed multibillion-dollar AI and high-performance computing hosting agreements over the past year.

Investors appear to be rewarding the shift even as bitcoin mining economics stay weak. A basket of mining stocks gained roughly 56% in early 2026 while bitcoin's price fell about 17% over the same stretch.

The trend extends beyond the largest operators. Hyperscale Data sold about 685 BTC for roughly $43 million to fund expansion of its Michigan data center, while Singapore-based Bitdeer sold its entire Bitcoin treasury in February and MARA sold about $1.5 billion worth of Bitcoin in May to fund AI infrastructure.

Hashrate Outlook Hinges on Bitcoin Price

CoinShares still projects hashrate could climb back toward 1.8 zettahash per second by the end of 2026, but that forecast is conditional on bitcoin's price recovering toward the $100,000 level, which would restore mining profitability and give companies a reason to reinvest in hashrate rather than AI hosting.

Bitcoin's value has fallen nearly 50% since its October 2025 all-time high, dragging down the dollar value of the block subsidy, currently 3.125 BTC. Checkonchain data puts the estimated average cost of producing one bitcoin at $78,254, almost 23% above the current spot price.

The shift could ease sell pressure from miners even as it raises questions about network security. A lower hashrate means fewer machines securing the network, though Bitcoin's automatic difficulty adjustment keeps block production near a 10-minute average. For investors, the mining sector is increasingly a bet on AI infrastructure rather than bitcoin alone.

This article is for informational purposes only and does not constitute investment advice.