November Profit Crisis: 70% of Leading Miners Transition to $20 Billion AI Sector

The profitability of Bitcoin mining hit unprecedented lows in late 2025, with the hash rate falling below $35 per petahash per second while production costs climbed to $44.8 per petahash. This situation resulted in payback periods extending over 1,200 days, leading 70% of top mining firms to now generate income from artificial intelligence infrastructure.

Key Takeaways

Bitcoin mining profitability faced unprecedented lows in late 2025.
70% of leading mining firms have pivoted towards generating revenue from artificial intelligence.
AI hosting now offers returns approximately 50% higher than traditional mining.
A significant rise in convertible note issuances is reshaping the financing landscape.
Regulatory actions around illegal mining are increasing, while some countries are welcoming mining initiatives.

November 2025 marked a significant change for the worldwide Bitcoin mining sector. A mix of dwindling profit margins, regulatory pressures, and strategic changes have altered the industry's dynamics. Here are five key trends that stood out during this pivotal month.

Declining Profitability

The network hashrate reached an all-time high of 1.1 ZH/s in October, escalating competition among miners. Concurrently, the price of Bitcoin fell to around $81,000, severely impacting profit margins across the board. Consequently, machines are taking over 1,200 days to pay back their costs.

MARA's CEO, Fred Thiel, issued a stark warning regarding the industry's future. He indicated that following the 2028 halving, which is expected to reduce block rewards to approximately 1.5 BTC, many business models could fail. Thiel emphasized that only those miners with affordable energy resources or successful AI adaptations are likely to persist.

As traditional mining revenues continue to decline, financing costs are rising, putting additional pressure on businesses. Even those companies pivoting towards AI have yet to fully offset their Bitcoin revenue losses, prompting swift strategic choices across the sector.

Acceleration of AI Transition

Seven out of the top ten mining firms are now deriving income from artificial intelligence. The revenue generated from AI hosting currently outperforms traditional mining returns by around 50% per megawatt. This paradigm shift is transforming how success is defined within the industry.

Bitfarms revealed plans to completely phase out Bitcoin mining in the next two years. Its operation in Washington State will transition to a high-performance computing (HPC) data center by December 2026. CEO Ben Gagnon noted that potential earnings could exceed all previous mining profits.

IREN secured a groundbreaking $9.7 billion GPU cloud computing deal with Microsoft, which includes a 20% upfront payment. This agreement will see IREN deploying NVIDIA GB300 GPUs at its Texas facility starting in 2026.

Hut 8 sold four natural gas power plants in Canada, totaling 310 MW, to TransAlta, a move aligning with its shift towards Bitcoin mining and HPC infrastructure. CleanSpark aims to evolve into a comprehensive computing platform catering to both AI and Bitcoin.

Significant Capital Restructuring

The industry is experiencing a surge in convertible note issuances. CleanSpark raised $1.15 billion at 0% interest, while TeraWulf successfully completed a $1.025 billion offering, also at zero percent.

Cipher Mining issued $1.4 billion in senior secured notes with a 7.125% yield. IREN plans to raise $2 billion through two different convertible bond offerings. Bitfarms completed a convertible debt issuance of $588 million.

Equipment commitments are equally impressive, with IREN signing a $5.8 billion deal with Dell for NVIDIA GB300 GPUs. Cipher has expanded its Fluidstack agreement, securing $1.73 billion in guarantees from Google.

Canaan has received a $72 million strategic investment from BH Digital, Galaxy Digital, and Weiss Asset Management, aimed at bolstering high-performance computing and energy infrastructure development while minimizing future financing dilution.

Regulatory Challenges and Support

In Malaysia, authorities have discovered approximately 14,000 illegal mining operations over the last five years, leading to roughly $1.1 billion in damages to the state utility TNB due to electricity theft. A government task force has been established as of November to enhance regulatory crackdowns.

Conversely, Russia is utilizing AI technology to tackle illegal mining issues. The state's grid operator, Rosseti, has incorporated AI analytics into smart meters to detect power discrepancies. Recently, a power theft operation valued at $1.5 million was halted.

However, not all governments are hostile toward mining. Japan has initiated its first government-linked mining project in collaboration with a major regional utility, with Canaan set to deploy water-cooled Avalon miners by the year's end for grid load management.

In Belarus, President Lukashenko has branded cryptocurrency mining as a national priority for electricity consumption, suggesting crypto could help reduce dependency on the dollar. Approximately 60% of Russian miners remain unregistered, prompting discussions surrounding possible amnesty.

Strategic Bitcoin Accumulation

Prominent miners are choosing to accumulate Bitcoin instead of selling it on the open market. MARA holds 53,250 BTC, worth roughly $5.6 billion, securing its position as the second-largest public Bitcoin reserve holder globally.

As of November 30, CleanSpark reported total holdings of 13,054 BTC, with November production alone reaching 587 BTC, bringing its year-to-date mining output to 7,124 BTC.

Cango retains 6,412 BTC with a clear commitment to long-term holding. Bitdeer has increased its reserves to 2,233 BTC after mining 511 BTC in October. Canaan achieved a record 1,610 BTC and 3,950 ETH.

This focus on accumulation indicates a bullish outlook on Bitcoin’s long-term value, reflecting the belief among miners that weathering the current profitability crisis will yield favorable outcomes. Those who can endure the challenge may emerge as key winners in the future.