Under pressure from soaring operational costs and the allure of more predictable revenue from artificial intelligence (AI) infrastructure, major Bitcoin mining companies are dumping their BTC holdings at an unprecedented rate. According to CryptoComLearn, MARA Holdings sold 15,133 bitcoins between March 4 and March 25, generating over $1 billion. Cango, Bitdeer, and Riot Platforms also liquidated significant amounts during the same period.
Cost Pressure: Loss of $19,000 per Mined Bitcoin
The core reason behind the sell-off is the huge gap between mining costs and Bitcoin's market price. Research from CoinShares shows that the average cost to mine one Bitcoin now results in a loss of roughly $19,000 (based on current electricity and overhead expenses). Geopolitical tensions like the Russia-Ukraine conflict have further inflated energy prices, making mining even less profitable. Holding Bitcoin as a treasury asset no longer makes economic sense for these firms, forcing them to sell to maintain cash flow.
Pivot to AI: More Stable, Predictable Revenue
Beyond cost pressures, mining companies are systematically reallocating computing resources from Bitcoin mining to AI data center operations. AI training and inference require massive GPU clusters and stable power—exactly what mining facilities provide. Core Scientific and TeraWulf have announced financial support agreements with tech giants Google and Microsoft, accelerating their shift toward AI computing services. Compared to Bitcoin's price volatility, AI cloud service contracts offer long-term, predictable cash flows, which is highly attractive for miners seeking stable operations.
Industry Reshaping: Dual-Track or Full Transformation
This shift is reshaping the entire crypto mining landscape. Some companies choose a dual-track strategy: retaining part of their mining fleet while leasing remaining hashing power to AI clients. Others are abandoning mining entirely and transforming into pure AI infrastructure providers. The future of these firms will depend heavily on Bitcoin's price trajectory—a significant rally could make traditional mining profitable again, potentially prompting another strategic shift. For now, AI business has become miners' “second curve” to survive the industry downturn.