MARA’s pivot to AI is net positive for Bitcoin, experts believe – Here’s why

ambcryptoPublished on 2026-03-29Last updated on 2026-03-29

Abstract

Public Bitcoin miners like Marathon Digital (MARA) are increasingly shifting resources toward AI, a move analysts see as beneficial for the remaining Bitcoin mining ecosystem. While this pivot reduces the overall network hashrate, it leads to a decrease in mining difficulty. This, in turn, improves profit margins for the solo and medium-sized miners who continue operating. MARA recently sold over $1 billion in BTC to reduce debt and fund its new AI data center venture, a trend followed by other major miners. The current cycle shows the lowest network difficulty growth as a result. Analysts suggest this creates a more balanced ecosystem with less hash rate controlled by large public companies. Furthermore, a potential energy price increase, triggered by an extended closure of the Strait of Hormuz, could disadvantage oil-dependent miners and further benefit smaller operations with stable power agreements. Although miner distress eased in early March, supporting BTC's price recovery, a drop below $65,000 could trigger another wave of miner sell-offs and put downward pressure on the price.

Public Bitcoin miners who have either partially or wholly ditched the sector and pivoted to AI could be an incredible boost to those remaining behind. While this lowers the hashrate and perceived network security, the shift is not that bad for Bitcoin, according to analysts.

This week, MARA offloaded 15,133 BTC, worth over $1 billion, reducing its outstanding debt by 30%. The firm recently partnered with Starwood to develop AI data centers.

Other public miners, such as Bitdeer, dumped their entire BTC, and Riot also offloaded part of their holdings to fund AI data ventures. For analyst Billy Boone, the AI bet is currently paying better than BTC mining.

But the exits also allow solo miners and those who remain to get higher margins. Boone clarified,

When they (large miners) redirect capital and infrastructure toward AI, that hashrate comes offline. Unless equivalent hashrate fills the gap, difficulty drops. Lower difficulty = higher margins for every miner who stays.

Is the West Asia crisis a catalyst for Bitcoin miners?

For the uninitiated, hashrate refers to the computing power needed to mine BTC by solving mathematical problems.

On the other hand, network difficulty is a self-adjusting parameter that is adjusted every two weeks to determine how easy or challenging it is to mine BTC. Both help enhance Bitcoin network security.

Interestingly, the current market cycle has seen the lowest network difficulty growth at only 75% as key players shift to AI.

Source: X/Billy Boone

In other words, it is relatively easier to find new blocks (BTC) for solo and medium miners. But another opportunity may present itself if the West Asia crisis extends into April, added Boone.

If the Strait of Hormuz stays closed into April, energy prices climb. Oil-dependent miners get hit hardest. This might be the best setup small/medium miners with stable PPA’s have seen since the 2021 China mining ban.

Barefoot Mining CEO Bob Burnett echoed Boone’s analysis of the segment and added,

Public miners pushed out smaller miners. The ecosystem will be much better balanced with much less hash rate in their control.

Status of Bitcoin miner distress

That said, the miner distress seen from late November eased earlier this month, as shown by Hash Ribbon (shaded areas). Consequently, this reduced miner sell-off and boosted the March BTC price recovery.

Source: Glassnode

However, if BTC drops below $65K, there is likely to be another distress that could subdue BTC if miners begin offloading again.

Final Summary

  • Analysts viewed the trend of public Bitcoin miners, such as MARA, partially or wholly pivoting to AI as bringing “better balance” for solo and medium miners.
  • Miner distress eased in early March, but any further price drop could prompt miners to offload their BTC.

Related Questions

QWhy do experts believe MARA's pivot to AI is a net positive for Bitcoin?

AExperts believe it's a net positive because when large miners redirect capital and infrastructure to AI, hashrate decreases, leading to lower network difficulty. This results in higher profit margins for the remaining solo and medium-sized miners, creating a better-balanced ecosystem.

QWhat recent financial move did Marathon Digital (MARA) make regarding its Bitcoin holdings?

AMarathon Digital (MARA) offloaded 15,133 BTC, worth over $1 billion, which reduced its outstanding debt by 30%.

QAccording to analyst Billy Boone, what is the direct consequence of large miners moving hashrate offline to pursue AI ventures?

AThe direct consequence is that the Bitcoin network's mining difficulty drops. This lower difficulty equates to higher profit margins for every miner who continues to mine Bitcoin.

QWhat potential external event could further benefit small and medium-sized Bitcoin miners, according to the analysis?

AIf the crisis in West Asia extends into April, keeping the Strait of Hormuz closed, energy prices would climb. This would negatively impact oil-dependent miners but could create an excellent opportunity for small and medium miners with stable power purchase agreements (PPAs).

QWhat is the current status of Bitcoin miner distress, and what could trigger its return?

AThe miner distress that was seen from late November eased in early March, reducing miner sell-offs and aiding the BTC price recovery. However, if the price of BTC drops below $65,000, it could trigger another period of distress as miners might be forced to offload their holdings again.

Related Reads

The Value Distribution of Stablecoins

**Summary: The Value Distribution of Stablecoins** The article argues that stablecoins are evolving from mere trading tools into broader channels for dollar access. It divides the stablecoin ecosystem into four layers to analyze how value is distributed: 1. **Issuance Layer:** Mints stablecoins, holds reserve assets, and captures the spread between reserve yield and user costs (e.g., Tether, Circle). This layer currently earns the largest profit margin. 2. **Infrastructure Layer:** Connects stablecoins to the traditional financial system, handling fiat on/off-ramps, banking integration, compliance (KYC/AML), and asset management (e.g., Bridge, BVNK). This is the "unglamorous" but critical work, building the essential bridges between crypto and real-world finance. 3. **Acquiring/Distribution Layer:** Integrates stablecoins into merchant systems, manages payment flows, and provides enterprise financial software (e.g., Stripe, Coinbase). They act as the access point for businesses. 4. **Application Layer:** The end-users and businesses that ultimately use stablecoins for payments, settlements, or as a store of value. They benefit from convenience but have little pricing power. The core thesis is that while the issuance layer currently dominates profits, the often-overlooked **infrastructure layer holds significant long-term potential**. The real challenge and barrier to mass adoption is not the on-chain transfer of stablecoins (which is simple), but the complex "last mile" integration into existing business workflows, banking systems, and regulatory frameworks across different countries. Companies in this layer are currently in a "land grab" phase, investing heavily to build networks, secure bank partnerships, and establish compliance pathways. While their position is currently pressured by the profitable issuers above and distribution platforms below, the article suggests that if stablecoins become a default financial rail for businesses, the infrastructure providers who have done the hard work of integration will ultimately gain strong pricing power and become entrenched, essential players.

marsbit1h ago

The Value Distribution of Stablecoins

marsbit1h ago

The Value Distribution of Stablecoins

The Value Distribution of Stablecoins The article argues that stablecoins are evolving from a mere trading tool into a broad "dollar channel." It analyzes the industry's value chain through four layers: 1. **Issuance Layer (e.g., Tether, Circle):** The top layer that mints stablecoins, holds reserve assets, and captures the thickest interest rate spread. 2. **Infrastructure Layer (e.g., Bridge, BVNK):** Connects stablecoins to the traditional financial system, handling critical but complex "dirty work" like fiat on/off-ramps, banking integration, compliance (KYC/AML), and cross-border settlement. 3. **Acquiring/Distribution Layer (e.g., Stripe, Coinbase):** Embeds stablecoins into merchant systems, manages payment flows, and integrates with enterprise software. 4. **Application Layer:** End-users and businesses that ultimately use stablecoins for payments, settlement, or storing value. The author posits that while the issuance layer currently captures the most profit, the most overlooked and potentially critical layer is infrastructure. The core challenge for stablecoin adoption isn't the on-chain transfer (which is simple), but bridging the gap between blockchain and the real-world financial system. This involves solving practical problems for businesses: fiat conversion, reconciliation, tax handling, and user onboarding. Infrastructure companies are currently in a difficult "land-grab" phase—building networks, securing banking relationships, and achieving compliance country-by-country. They face pressure from both the profitable issuance layer above and distribution platforms below. However, the author suggests this layer is building a crucial moat. Once stablecoins become a default business rail, the infrastructure players who have done the hard work of integration may gain significant, durable value and pricing power.

链捕手1h ago

The Value Distribution of Stablecoins

链捕手1h ago

Why Is Nvidia Borrowing $20 Billion When It's Not Short of Cash?

Nvidia's recent announcement to issue at least $20 billion in senior notes, despite holding a strong cash position with over $48.6 billion in free cash flow last quarter, is not a sign of financial need. Instead, it represents a strategic move to leverage its high credit rating (recently upgraded to AA by S&P) to secure low-cost, long-term debt. This capital will support long-term AI infrastructure investments, data centers, R&D, supply chain prepayments, and strategic investments, while allowing the company to continue aggressive shareholder returns through stock buybacks and dividends. The decision reflects a mature capital management strategy: using debt to finance long-term growth assets is more efficient and less dilutive to shareholders than equity financing. It signals that Nvidia, like other tech giants (Alphabet, Meta, Amazon), is entering a new phase of heavy AI capital expenditure, shifting from a pure growth story to a story about capital allocation, credit strength, and long-term ecosystem positioning. The key question for investors is whether Nvidia can maintain its high cash flow generation and ensure that returns from these AI investments justify the cost of capital over the long term. The bond issuance amplifies its expansion capabilities but also ties its valuation more closely to the broader AI investment cycle's sustainability and profitability.

marsbit1h ago

Why Is Nvidia Borrowing $20 Billion When It's Not Short of Cash?

marsbit1h ago

Liberland Fires Tech Secretary After Alleged Blockchain And Website Takeover Attempt

Liberland's congress has voted to remove Technology Secretary Dorian Stern Vukotić, following a resolution accusing him of attempting to hijack the Liberland.org domain, removing administrative multisig protections, blocking the president from voting, and launching unauthorized tokens. The incident serves as a case study in blockchain governance, highlighting risks that go beyond smart contracts to include control over domains, admin keys, and off-chain authority. For the crypto industry, it underscores the need to scrutinize decentralization claims against operational realities, where a small group can still compromise governance. The story reflects a broader market shift where infrastructure security and governance are becoming as critical as price action. Editorial framing should treat the development as a verified information signal about governance risks, avoiding overstatement of Liberland's legal status and leaving room for follow-up evidence.

bitcoinist2h ago

Liberland Fires Tech Secretary After Alleged Blockchain And Website Takeover Attempt

bitcoinist2h ago

How to Do Research Well: Deliberately Practice the Real Skills That Matter

No one truly teaches you how to do research. You're often given a desk, a pre-selected problem, and vague instructions to "create something new." Consequently, many people reverse-engineer the job based on visible outputs—papers, posts, announcements—learning only how to *appear* like a researcher rather than how to *become* one. True research capability is built from stacking small, trainable skills, nearly all of which can be developed through deliberate practice. **Pick Your Own Problem:** Most researchers absorb problems from advisors or trends, lacking the underlying reasoning. Choosing a problem you genuinely care about, as John Schulman advises, leads to original work. Develop "taste" like a muscle: predict experiment outcomes, guess paper results from methods, and track which findings remain important over time. **Upgrade Your Inputs:** Relying on shared reading lists (arXiv hot lists, filtered group chats) leads to unoriginal conclusions. Undervalued old literature often holds crucial insights (e.g., MoE, LSTM, backpropagation). Richard Sutton's "The Bitter Lesson" or Claude Shannon's 1952 talk on creative thinking are more predictive than lengthy modern surveys. Breadth matters as much as depth: draw from neuroscience, mechanism design, hardware knowledge, and honest statistics. Read papers directly, especially appendices and limitations sections. **Write Everything Down:** As Paul Graham noted, writing exposes flaws in seemingly mature ideas. Writing is the cheapest defense against self-deception. Following Feynman's principle, Darwin programmatically wrote down facts contradicting his theory to combat memory bias. Maintain a detailed log of hypotheses, setups, predictions, results, and updated understandings. Reviewing past logs fosters essential humility.

marsbit3h ago

How to Do Research Well: Deliberately Practice the Real Skills That Matter

marsbit3h ago

Trading

Spot
Futures

Hot Articles

Discussions

Welcome to the HTX Community. Here, you can stay informed about the latest platform developments and gain access to professional market insights. Users' opinions on the price of S (S) are presented below.

活动图片

Top Questions

Hot Categoriesright-arrow

Hot Tagsright-arrow