Bitcoin Network Hashrate Sees Significant Decline Amid AI Infrastructure Expansion

Bitcoin's network hashrate has fallen below 1,000 exahash per second (EH/s) for the first time since mid-September, as miners progressively shift their focus towards artificial intelligence (AI) infrastructure.

Key Takeaways:

Bitcoin's hashrate fell to below 1,000 EH/s, marking a nearly 15% decrease from its peak in October.
Miners are reallocating resources towards AI projects that provide more consistent returns.
There is now direct competition between AI processing and Bitcoin mining for computing power and energy resources.

Data from the Hashrate Index indicates that the network’s seven-day moving average has dropped to approximately 993 EH/s, following a weekend dip below the 1 zetahash per second threshold.

This decline signifies a nearly 15% reduction from the cycle high of roughly 1,157 EH/s recorded in mid-October, highlighting a significant decrease in active mining power.

Bitcoin Network Hashrate Drops to Lowest Level Since September Amid AI Shift

Miners Redirect Focus to AI as Bitcoin Mining Becomes Less Profitable

Industry insiders believe that this shift signals changing economic dynamics rather than a loss of confidence in Bitcoin mining itself.

Leon Lyu, the founder and CEO of StandardHash, commented that miners are redirecting electricity to AI and high-performance computing workloads, which currently offer more reliable margins.

Large mining operations, which are equipped with substantial power sources and cooling capabilities, can relatively quickly transition to support data center-style functions.

This shift comes after a prolonged period of decreased miner profitability. TheMinerMag had previously characterized 2025 as one of the most challenging environments for profit margins in the industry, citing weaker revenues and increasing debt levels across the sector.

In light of these challenges, AI computing has emerged as an increasingly appealing option, particularly for operators looking to stabilize their cash flow.

Lyu warned that reported hashrate figures might not fully capture the actual mining activity. He speculated that Bitmain, the largest manufacturer of mining hardware, might be deploying machines through secondary sources or private collaborations that aren’t captured by public metrics.

If this is the case, it suggests that some capacity remains active yet isn't reflected in standard measurements.

Despite these developments, the hashrate decline has occurred alongside some positive trends. Since mid-November, Bitcoin mining difficulty has adjusted downward four times, reducing the computational effort required for mining blocks.

Additionally, hashprice—an indicator of miner revenue—has seen an increase from approximately $37 to $40 per petahash per second per day over the past month, indicating improved economic conditions.

However, the most recent data highlights a broader trend: as competition for power escalates, AI has become more than just a side project for miners; it is now a direct competitor for computing resources, altering how capital and energy are distributed throughout the Bitcoin mining sector.

Research Debunks Energy Criticism of Bitcoin Mining

Research by independent analyst Daniel Batten argues that Bitcoin mining can actually fortify electrical grids and decrease electricity costs for consumers, as opposed to stressing power systems.

His findings challenge prevalent assertions that mining disrupts grid stability or inflates energy prices. Batten’s analysis draws on peer-reviewed studies and operational data, suggesting that the mining industry's adaptable power consumption can yield observable benefits for energy systems.

In the meantime, Bitmain is significantly slashing prices across various generations of Bitcoin mining hardware in response to the mounting pressure on the mining industry. Recent advertising and internal pricing lists shared with customers reveal aggressive promotional strategies.

One such promotion, dated December 23, offered bundles of four S19 XP+ Hydro units paired with an ANTRACK V2 container, suggesting an effective price of about $4 per terahash for the 19 J/TH machines.