Bitcoin's Global Hash Rate Drops 15% from Peak: Are Miners Being Lured Away by AI?
Bitcoin's network hashrate has declined by approximately 15% from its October peak, falling to around 977 EH/s, as miners face prolonged financial strain. Profitability has been deteriorating for five consecutive months, with December’s average daily block reward per EH/s hitting a record low of $38,700—down 7% month-over-month and 32% year-over-year. Factors include post-halving reduced rewards, rising operational costs, and regulatory impacts, such as the shutdown of an estimated 1.3GW mining capacity in Xinjiang.
Amid these challenges, many mining firms are pivoting to AI data center operations, leveraging their existing power infrastructure and low electricity costs (often 3–5 cents per kWh). Some companies, like IREN, are adopting cloud computing leasing models, while others offer power and data center leasing to major tech firms like Google and Microsoft.
Despite short-term pressures, analysis from VanEck suggests that falling hashrates have historically correlated with positive Bitcoin price performance over the following 180 days, with average returns of +72% during periods of hashrate contraction. This may indicate a market cleansing phase that could lead to greater industry consolidation and longer-term stability.
marsbit01/20 07:08
