Bitcoin Mining Companies Flee for the Nth Time
Since late last year, major publicly traded Bitcoin mining companies have initiated a significant wave of Bitcoin (BTC) sell-offs. Cango sold about 60% of its holdings (4,451 BTC) in February, Bitdeer liquidated its entire Bitcoin inventory in January, Riot Platforms sold 3,778 BTC in the first quarter, and Core Scientific planned to sell approximately 2,500 BTC. Notably, Marathon Digital (MARA) sold 15,133 BTC in just three weeks in March, cashing out over $1 billion, while also cutting 15% of its workforce as part of a strategic shift toward becoming an energy and digital infrastructure company.
This collective divestment is driven by three primary motives. First, mining has become unprofitable for many; the average cash cost to mine one BTC is approximately $79,995, while BTC trades around $68,000–70,000, resulting in an average loss of about $19,000 per coin. Second, AI data centers offer a more stable and lucrative alternative, with tech giants like Google, Microsoft, and financial institutions like Morgan Stanley providing substantial backing and contracts. Mining companies are repurposing their existing infrastructure—cheap power contracts, data centers, and cooling systems—toward AI, which promises higher, predictable margins. Third, some firms are using BTC sales to optimize their balance sheets, such as repurchasing convertible debt at a discount to reduce liabilities and avoid equity dilution.
The industry is diverging into three paths: some, like CleanSpark and HIVE, are坚守 (holding fast) to mining, betting on a cyclical recovery; others, like MARA and Riot, are pursuing a dual strategy of maintaining BTC holdings while expanding into AI; and a third group, including Core Scientific and TeraWulf, is undergoing a full pivot to AI, where mining may become a secondary operation.
The future of these companies heavily depends on Bitcoin’s price trajectory. If BTC surpasses $100,000 by late 2026, mining profitability could recover. If it remains below $80,000, high-cost miners may continue to exit. If it breaks all-time highs, the industry could see another expansion cycle.
Ultimately, this shift raises a broader question about Bitcoin’s security budget, as miners redirect resources to AI, the long-term cost of securing the Bitcoin network may become a growing concern. However, historically, the network has emerged stronger after each mining shake-out, though this time the transition is structural and could have lasting implications.
marsbit04/03 09:09
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