Hashrate Price Hits $40, Bitcoin Miners Shift to AI
Hashrate price, the expected daily revenue per PH/s, has plunged from over $62 to about $42 since July and is nearing the critical $40 level. This collapse is squeezing Bitcoin mining operations. Small and inefficient miners are powering down rigs as electricity and maintenance costs exceed earnings. ASIC makers like Bitdeer have turned to self-mining to offset weaker demand and declining hardware orders.
Meanwhile, the Bitcoin network’s hashpower has climbed past 1 ZH/s even as block rewards fell to 3.125 BTC after the 2024 halving. Rising energy costs and high hardware capex have further narrowed profit margins. In response, major mining firms are diversifying into AI compute services. Cipher Mining signed a $5.5 billion, 15-year agreement with AWS. IREN secured a $9.7 billion GPU contract with Microsoft.
Bitcoin’s price has also slid from October peaks above $126,000 to below $100,000. Heavy selling by long-term holders and leveraged liquidations have deepened the downturn. Analysts warn that bearish conditions could persist, marking a crucial turning point for miner profitability and business models. The ongoing slump in hashrate price underscores the sector’s urgent need to adapt.
Bearish
The combined drop in hashrate price and Bitcoin’s market price suggests a bearish outlook for BTC in the near term. Falling hashprice forces small miners offline and weakens hardware demand, reflecting reduced network profitability. Continued liquidations and selling pressure by long-term holders may extend price declines. Over the long term, the sector’s pivot toward AI compute and high-performance services could mitigate revenue losses but will likely take time to offset shrinking mining margins. Until AI contracts deliver meaningful returns, Bitcoin faces downward price pressure as miner capitulation and network adjustments persist.