Bitcoin mining faces toughest stretch with 50% hash rate drop
Bitcoin mining is facing its toughest stretch since China's 2021 ban, with the network's hash rate dropping 50% below its usual growth.
The big reasons? Mining companies are shifting gears to work on artificial intelligence projects instead.
Firms like TeraWulf have landed major AI contracts, even leasing space to Anthropic, and while this move brings in new cash, it hasn't solved the problem of sky-high production costs: some miners are spending over $100,000 just to mine a single Bitcoin during rough market patches.
Existing data centers now more valuable
Building new data centers is getting harder, so existing ones are now more valuable than ever.
Companies like Core Scientific have even scrapped big deals to focus more on AI.
Still, experts at CoinShares say Bitcoin mining isn't out for the count: it's survived tough cycles before and could bounce back again if history repeats itself.