In a turn of events that would make even the most stoic philosopher chuckle, the boom of artificial intelligence (AI) has provided a rather unexpected buoy for Bitcoin miners, whose rewards have, quite frankly, been more disappointing than a cold cup of tea. The demand for computing prowess to train these models has led some miners to glimpse a flicker of hope amid their dwindling fortunes.
Take, for instance, our enterprising friends at Iren (Nasdaq: IREN), Applied Digital Corp (Nasdaq: APLD), and Hut 8 Corp (Nasdaq: HUT). These savvy individuals have repurposed their mining rigs for AI, reporting share gains in 2025 that could lift the spirits of even the most jaded investor.
Yet, not all are donning the cloak of AI opportunity. Some miners are casting off their Bitcoin jerseys like they’ve just realized they’ve been supporting the wrong team all along. Bitfarms (Nasdaq: BITF), for example, has recently decided to sell its Paraguay BTC mining plant faster than you can say “invest in North American HPC/AI energy infrastructure.” One has to admire the audacity!
Then there’s Riots Platform (Nasdaq: RIOT), which made a deal with AMD that was so well-funded it involved selling 1,080 BTC from its balance sheet. That’s right, folks-nothing screams “I believe in this product” quite like an extravagant fire sale!
Will AI pivot pressure BTC?
The overall mining sector has been flailing about like a fish out of water, struggling against rising costs that now surpass the current Bitcoin [BTC] price. Ah, the sweet irony! The Hash Ribbon, that trusty indicator of miner capitulation, painted a rather gloomy picture in late November, draping everything in ominous red shades.
Miners, bless their souls, are often forced to sell their precious BTC just to keep the lights on-talk about a tragic irony! Historically, such capitulation has been a bottom signal, a good buying opportunity lurking in the shadows, especially if the 30-day average (green) manages to tango above the 60-day average (blue).
Despite the possibility of a rebound in BTC’s price, the miner AI pivot also unveils a side of BTC that has been largely ignored, much like that one relative at family gatherings. With each halving event, the block rewards miners receive are slashed in half-what a lovely surprise! In 2020, they were graced with 6.25 BTC; after the 2024 halving, it will drop to 3.125 BTC. By the time we reach 2028, it will be a mere 1.5625 BTC. Quite the cliff dive, wouldn’t you say?
Unless BTC’s value skyrockets into the stratosphere, mining will become as attractive as a soggy biscuit compared to the returns on AI.
Will Bitcoin network security falter?
As the rewards dwindle, one might expect transaction fees to pick up the slack, providing a cushion for miners to remain afloat. But alas, as block subsidies diminish and fees fail to provide adequate coverage, we find ourselves in precarious waters. Justin Bons, a rather astute founder of VC firm Cyber Capital, has warned us all:
“BTC’s security is lower now than it was 5 years ago! The security budget will keep falling until the network is attacked.”
Final Thoughts
- The BTC miners’ pivot to AI and the broader mining sector have added a delightful pinch of pressure to the markets.
- While a market shift seems tantalizingly close, the sustainability of BTC mining remains as clear as mud.
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2026-01-20 19:08