A remarkable transformation is occurring in Bitcoin ($BTC) mining sector. Increasing cost pressures and declining profitability are prompting mining companies to turn to artificial intelligence (AI) and high-performance computing (HPC) infrastructure, according to a recently published industry report.
Specifically, the average cost of production for publicly traded mining companies is expected to rise to around $80,000 per coin by the fourth quarter of 2025, while the price of Bitcoin is expected to hover around $70,000. This equates to a loss of approximately $20,000 per coin across the sector. This situation raises serious questions about the sustainability of current business models.
In this challenging environment, mining companies are beginning to fundamentally change their business models. Companies aim to diversify their revenue streams with a focus on artificial intelligence and data center infrastructure. To date, more than $70 billion has been signed across the industry for this transformation, with some companies planning to generate 70% of their revenue from AI activities by the end of 2026. This strategy is increasingly evolving mining companies into data center operators.
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This transformation will be primarily funded through leveraged finance and Bitcoin sales. According to the data, the listed mining company sold more than 15,000. $BTC In total. Industry giants such as Core Scientific, Bitdeer, and Riot Platforms continue to reduce reserves to fund AI investments. It is estimated that approximately $7 billion was generated from these sales.
However, this transformation also comes with some risks. The shift of miners’ processing power to other areas has put pressure on hashrate, a key indicator of network security. Network power, which reached approximately 1160 EH/s in 2025, has recently decreased to approximately 920 EH/s, and a decrease in mining difficulty has also been observed. This development brings new discussions about network security and decentralization.
On the other hand, there are large discrepancies in market valuations. Mining companies that focus on artificial intelligence activities are valued at approximately 12.3 times future earnings, while for companies that focus solely on mining, this ratio remains at 5.9 times.
*This is not investment advice.
