Bitcoin mining companies are increasingly leaning toward AI and cloud hosting as mining economics weaken. According to a Techub News brief citing BeInCrypto, Bitcoin network hashrate climbed above 1.1 ZH/s in October 2025, but later fell below 900 EH/s on multiple occasions. Mining difficulty also dropped sharply twice in 2026, falling 11.16% in February and 10.09% in June.
Company results highlighted the same trend. Core Scientific posted a -56% gross margin in its self-mining business in the second quarter, while its data center hosting segment generated nearly $80 million in gross profit. At TeraWulf, high-performance computing leasing accounted for about 71% of quarterly revenue. The figures point to stronger returns from redirecting power infrastructure toward AI and cloud computing hosting.
The report said competition in the sector is no longer centered only on selling electricity. Attention has shifted to monetizing existing power access, especially at sites with stable grid connections, substations, and fiber links, which are more attractive to AI data centers. Even so, Bitcoin mining still retains an edge in certain use cases because it can absorb intermittent, remote, or hard-to-transmit low-cost power.
Bitcoin mining firms are moving more of their infrastructure toward AI and cloud hosting as mining returns come under pressure, according to a Techub News brief citing BeInCrypto.
Bitcoin network hashrate rose above 1.1 ZH/s in October 2025, then dropped below 900 EH/s multiple times afterward. Mining difficulty also fell 11.16% in February 2026 and 10.09% in June 2026.
Company earnings show a shift in where profits are made
Core Scientific reported a -56% gross margin for its self-mining business in the second quarter. Its data center hosting segment, by contrast, generated nearly $80 million in gross profit.
TeraWulf said high-performance computing leasing contributed about 71% of its quarterly revenue. The figures suggest that redirecting power infrastructure toward AI and cloud computing hosting can deliver higher returns than traditional mining operations.
Competition is moving beyond electricity sales
The report said the sector's competitive focus has shifted from straightforward electricity sales to monetizing existing power access. Sites with stable grid connections, substations, and fiber connectivity are drawing more interest from AI data centers.
Bitcoin mining still has advantages in specific settings
Even as large mining companies gradually move computing capacity toward higher-margin businesses such as AI hosting, Bitcoin mining still holds an advantage in certain scenarios. BeInCrypto said mining can flexibly absorb low-cost power that is intermittent, remote, or difficult to transmit.
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