Bitcoin’s network hashrate has recently slipped below 1,000 exahash per second (EH/s) for the first time since mid-September, with a notable 15% drop from its October peak. This shift comes as miners increasingly divert their resources toward more profitable artificial intelligence (AI) infrastructure, indicating a significant change in the landscape of cryptocurrency mining.
Current data from Hashrate Index reveals that the seven-day moving average for Bitcoin’s hashrate has fallen to about 993 EH/s, just dipping below the 1 zetahash per second mark over the weekend. This decline marks a tangible reduction in active mining power, a stark contrast to the cycle high of approximately 1,157 EH/s recorded in mid-October.
Experts in the field suggest that this trend reflects a shift in economic strategy rather than a diminishing confidence in Bitcoin mining itself. Leon Lyu, founder and CEO of StandardHash, emphasized that miners are reallocating their electricity towards AI and high-performance computing workloads since these options offer more predictable returns in the current market. He noted that large-scale mining facilities, originally designed for cryptocurrency production, can be quickly adapted to support data center operations due to their substantial power and cooling capacities.
This shift comes during a particularly challenging period for miners as profitability has dwindled, with trade publication TheMinerMag identifying 2025 as one of the toughest years for mining margins. This environment has driven operators to seek out alternatives such as AI compute, which can offer greater financial stability.
Lyu pointed out that reported hashrate figures might not fully capture ongoing mining activities. He speculated that Bitmain, the world’s leading manufacturer of mining hardware, might be deploying machines through secondary channels or private partnerships not reflected in publicly available data. If true, it implies that some mining capacity remains active but is not accounted for in standard metrics.
Despite the recent decline in hashrate, Bitcoin mining has seen some positive developments. The mining difficulty has adjusted downward four times since mid-November, which decreases the computational effort needed to mine new blocks. Furthermore, the hashprice, a key revenue indicator for miners, has risen from about $37 to $40 per petahash per second per day over the past month, suggesting some improvement in economic conditions.
However, the overall trend demonstrates a significant competitive landscape shift. With AI increasingly rivaling Bitcoin mining for compute and energy resources, the allocation of capital and electricity within the mining sector is being redefined.
In related developments, a study conducted by independent researcher Daniel Batten challenges the common narrative that Bitcoin mining harms electrical grids or drives up energy prices. Instead, Batten’s research argues that mining can actually bolster electrical grids and reduce consumer electricity costs through flexible power usage, a claim supported by peer-reviewed studies and operational data.
Additionally, as pressure mounts in the mining sector, Bitmain is aggressively cutting prices across various generations of Bitcoin mining hardware. Recent promotional efforts reveal significant price reductions, with a campaign dated December 23 offering packages of four S19 XP+ Hydro units, suggesting an effective price of roughly $4 per terahash for these machines.
This evolving scenario underscores a transformative period for Bitcoin mining as it grapples with new challenges and opportunities on the horizon.
