Bitcoin miners are experiencing a significant transformation that could reshape the entire sector, with many companies beginning to pivot from traditional cryptocurrency mining towards high-performance computing infrastructure. According to a new outlook from CoinShares, mining revenue is expected to see a dramatic decline, dropping from approximately 85% of total revenue in early 2025 to less than 20% by the end of 2026 for those companies that have secured contracts in the artificial intelligence (AI) space.
This strategic shift indicates a preference for more stable, high-margin contracts typically offered by data center providers and major technology companies, rather than continuing with the volatile and low-margin mining operations that have characterized the industry. Companies embarking on this pivot have reported remarkable success, achieving operating margins of 80% to 90% from AI contracts — a stark contrast to the slim margins that Bitcoin mining generally entails.
As of October 2025, Bitcoin miners had collectively announced deals worth a staggering $65 billion with leading technology firms and cloud service providers, showcasing the growing importance and financial potential of AI-related ventures. The revenue generated from these AI contracts is estimated to be three times higher on a per-megawatt basis compared to traditional mining activities.
Several publicly traded mining companies are at the forefront of this transition, with six notable firms having announced high-performance computing contracts. These include Core Scientific (CORZ), Cipher Mining (CIFR), TeraWulf (WULF), Applied Digital (APLD), Galaxy Digital (GLXY), Iris Energy (IREN), and Bit Digital (BTBT).
Notably, while these companies are shifting focus to AI, they have still managed to expand their Bitcoin mining capabilities throughout 2025. The CoinShares report indicates that publicly listed miners added more mining computing power in the first nine months of 2025 than they did during the same period in 2024. This growth has primarily been fueled by equipment orders placed in the previous year and subsequently delivered this year.
For investors interested in this dynamic sector, the CoinShares Bitcoin Mining ETF (WGMI) offers a way to gain exposure. This actively managed fund allocates at least 80% of its net assets to companies that derive a minimum of 50% of their revenue from Bitcoin mining operations or from providing related services, such as hardware or software to mining enterprises. The fund currently boasts an expense ratio of 0.75% and has achieved a substantial return of 72.05% over the past year, with total assets under management amounting to $301.9 million since its launch in February 2022.
As Bitcoin miners navigate this pivotal moment in the industry, their transition towards AI infrastructure could redefine their role in the tech landscape and create new opportunities for growth and profitability.
