Bitcoin Hashrate Drops 15% as Miners Chase AI Profits

Edgen Crypto·Jan 19 2026, 06:10

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Key Takeaways

The Bitcoin network's computational power has seen a significant downturn, raising questions about miner profitability and resource allocation. The hashrate has reached its lowest point in four months, a trend analysts connect directly to the more lucrative margins offered by the booming artificial intelligence sector, which competes for the same energy resources.

Bitcoin's 7-day average hashrate fell below 1,000 EH/s for the first time in four months, a decline of nearly 15% from its October 19 peak.
Analysts attribute the drop to miners repurposing their power infrastructure for higher-margin AI compute services.
The decline occurred even as Bitcoin mining profitability metrics, such as hashprice, have recently improved, signaling intense competition for energy from AI.

Hashrate Plunges 15% to 993 EH/s Despite Favorable Mining Conditions

The Bitcoin network's hashrate has fallen to a four-month low, signaling a potential shift in resource allocation by major mining operations. According to data from Hashrate Index, the seven-day moving average for network hashrate dropped below the 1 zetahash per second (ZH/s) threshold on Saturday, currently standing at 993 exahashes per second (EH/s). This represents a nearly 15% decrease from its peak of 1,157 EH/s recorded on October 19.

This reduction in computational power is particularly notable because it defies recent improvements in mining economics. The Bitcoin mining difficulty has decreased four times since November 12, 2025, falling from 156 trillion to 146.5 trillion, which makes it computationally easier to find a block. Concurrently, the Bitcoin hashprice—a measure of miner revenue—has increased from $37.15 to $40 per petahash per second per day over the last month, indicating better profitability. The fact that hashrate is falling despite these positive indicators points to a powerful external economic force at play.

Miners Pivot to AI for Superior Profit Margins

Analysts attribute the hashrate decline to a strategic pivot by miners toward artificial intelligence. Leon Lyu, CEO and founder of StandardHash, noted on Monday that miners are increasingly reallocating power from Bitcoin hashing to AI compute services in a search for higher profit margins. This trend is a direct response to what TheMinerMag called the "harshest margin environment of all time" for Bitcoin miners in 2025, which was marked by collapsing revenue and surging debt.

Bitcoin mining facilities are uniquely positioned to make this transition. They possess the large-scale power access and sophisticated cooling infrastructure that are also essential for high-performance computing (HPC) and AI data centers. As the demand for AI computation continues to grow, it is becoming a direct competitor for the energy and infrastructure previously dedicated to securing the Bitcoin network. Lyu also suggested that the official hashrate figures may be under-reported, as major manufacturer Bitmain could be scaling its operations through undisclosed secondary channels, potentially masking the true state of network activity.