A notable transformation is taking place in the Bitcoin ($BTC) mining sector. According to a recently published industry report, mining companies are turning to artificial intelligence (AI) and high-performance computing (HPC) infrastructure due to increasing cost pressures and declining profitability.
Specifically, the average production cost for publicly traded mining companies is expected to rise to approximately $80,000 per coin by the fourth quarter of 2025, while the Bitcoin price is projected to hover around $70,000. This translates to a loss of approximately $20,000 per coin across the sector. This situation seriously calls into question the sustainability of the current business model.
In this challenging environment, mining companies have begun to radically transform their business models. Companies are aiming to diversify their revenue streams by focusing on artificial intelligence and data center infrastructure. To date, contracts worth over $70 billion have been signed across the sector for this transformation, with some companies planning to generate 70% of their revenue from AI activities by the end of 2026. This strategy is leading mining firms to increasingly evolve into data center operators.
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The conversion is largely financed through leveraged financing and Bitcoin sales. According to data, publicly traded mining companies have sold over 15,000 $BTC in total. Leading industry players like Core Scientific, Bitdeer, and Riot Platforms continue to reduce their reserves to finance AI investments. These sales are estimated to have generated approximately $7 billion in funding.
However, this transformation also brings some risks. The shift of miners’ processing power to different areas has put pressure on hashrate, a critical indicator for network security. Network power, which reached approximately 1160 EH/s in 2025, has recently decreased to around 920 EH/s, and a decrease in mining difficulty has also been observed. This development brings about new discussions regarding network security and decentralization.
On the other hand, a significant divergence is noticeable in market valuations. Mining companies focusing on artificial intelligence activities are trading at a valuation of approximately 12.3 times their future revenue, while this ratio remains at 5.9 for companies focusing solely on mining.
*This is not investment advice.