Bitcoin miner margins hit record lows as AI demand reshapes operations

Bitcoin miner profitability has plunged to record lows as the cryptocurrency’s price weakened, prompting some operators to reduce their BTC holdings. Rising demand for AI infrastructure is also nudging miners to repurpose power capacity, a move that could turn coin production into a secondary activity for parts of the industry.

Estimated returns fell sharply: the daily return for 1 terahash per second dropped to $0.28 from $0.39 a month earlier, and projected monthly gross profit for an Antminer S21 XP Hydro at $0.07 per kilowatt-hour slid to $137 from $192. The price decline to roughly $62,000 coincided with weak on-chain activity and miner revenues at an all-time low, even as miners and mining pools still control more than $110 billion in Bitcoin.

Miners’ behavior has shifted as well. The 14-day average net position change for coins held by miners and pools turned negative in early May and has stayed negative, whether to fund operations, pay down leverage, or bankroll AI expansion.

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