Bitcoin Miners Face Worst Profit Crisis Ever — Giants are Turning Off Rigs and Chasing Bigger Money in AI

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Key Takeaways

• Bitcoin miner profitability has fallen to an all-time low, pushing operators to shut down rigs or repurpose facilities.

• Hashprice has collapsed to its weakest level in years.

• Major Bitcoin mining firms are now shifting to AI.

Bitcoin (BTC) miners are facing one of the harshest economic squeezes in the industry’s history.

As Bitcoin’s price slumps and network difficulty remains near record highs, mining revenue has cratered to levels that many operators say are simply impossible to sustain.

The pressure has become so intense that a growing number of miners, from small garage setups to industrial-scale operators, are abandoning mining altogether and converting their facilities into AI compute hubs.

Bitcoin’s Hashprice Falls to Its Lowest Level Ever

Last week, Bitcoin’s hashprice, the dollar value miners earn per unit of computing power (PH/s), sank below $35 per petahash, the lowest reading ever recorded.

For miners, hashprice is the industry’s heartbeat.

It reflects how much revenue a miner earns per petahash after accounting for Bitcoin’s price, block rewards, transaction fees, and mining difficulty.

When hashprice collapses, miners see their profit margins evaporate.

• All-time low: $34.49 PH/s (Nov. 21, 2025).

• Seven-day average: ~$37.48 PH/s (the weakest in more than five years).

• Year-to-date decline: Over 50%.

Even though Bitcoin’s price has fallen, difficulty has stayed high, meaning miners are spending more energy for fewer rewards. That imbalance is creating a historic profitability crunch.

Some miners are dumping reserves to stay afloat. On-chain data shows miners sold 30,000 BTC in just 48 hours, one of the fastest liquidation waves of the year.

The AI Stampede: Why Miners Are Turning Off Their Bitcoin Mining Rigs

As the economics of Bitcoin mining deteriorate, the industry is undergoing a quiet yet significant shift.

An increasing number of miners are converting their facilities into AI compute centers, more than at any point in Bitcoin’s history.

The reason is simple. The return profile is dramatically better.

• AI workloads generate 2–5 times more revenue per kilowatt-hour

• Tech giants like Microsoft, OpenAI, and mega-cloud providers are desperate for GPU capacity

• Mining facilities already have the two things AI infrastructure needs most: cheap power and industrial cooling

Several major players have already begun redirecting their operations toward AI.

Bitfarms, for example, disclosed a $46 million loss in the third quarter and has since announced plans to overhaul its business by 2027, converting roughly 341 megawatts of its Bitcoin mining capacity into infrastructure for high-performance AI computing.

CleanSpark has taken a similar path, securing AI compute contracts in Wyoming, in some cases beating traditional cloud providers that are racing to meet demand.

Beyond the publicly listed firms, many smaller private mining operators are making the same calculation.

Those with access to stranded or ultra-cheap power sources (such as hydro, flare gas, or remote wind farms) have begun installing GPU clusters and renting out compute directly to AI training companies.

For Bitcoin miners, the pivot is part survival strategy, part opportunity.

The economics of AI are proving far more attractive than Bitcoin mining at current prices, and many see the move as a way to escape the deep boom-and-bust cycles that have defined the mining industry for a decade.

Could This Migration Threaten Bitcoin’s Security?

Not immediately, but the trend is raising long-term questions.

If large miners continue routing their power toward AI rather than Bitcoin, the network could face:

• Reduced hashrate growth.

• Slower difficulty adjustments.

• Greater centralization pressure.

• Higher vulnerability to hostile mining cartels or state-aligned actors.

For now, smaller miners benefit — fewer competitors mean a slightly larger slice of the block reward.

However, analysts warn that a prolonged exodus could reshape Bitcoin’s mining landscape in ways not seen since the 2021 ban in China.

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