Bitcoin miners entered 2026 under heavier financial strain as the industry increasingly shifted toward artificial intelligence and high-performance computing infrastructure, according to a new report from CoinShares. The firm said Q4 2025 was one of the toughest periods for miners since the April 2024 halving, as Bitcoin fell from roughly $124,500 in October to about $86,000 by late December while network hashrate remained near record levels, putting sustained pressure on profitability.
CoinShares estimated that the weighted average cost of producing one bitcoin climbed to nearly $80,000, leaving many operators close to break-even. The sector’s key revenue metric, hashprice, dropped to around $36 to $38 per PH/s per day in the fourth quarter and then slipped further to about $29 in early 2026. James Butterfill, CoinShares’ head of research, described the backdrop as one of the hardest stretches for miners since the last halving, driven by weaker Bitcoin prices and rising competition across the network.
AI and HPC Gain Ground as Alternative Revenue Sources
As mining economics deteriorate, more public miners are leaning into AI and HPC. CoinShares said listed mining companies have announced more than $70 billion in AI- and HPC-related deals, with some firms expected to derive as much as 70% of revenue from AI by the end of 2026. The report argues that this shift reflects a clear economic tradeoff: in current market conditions, AI infrastructure offers more stable returns than pure Bitcoin mining.
The transition, however, is far from uniform. Some companies are aggressively repositioning themselves as data center operators, while others still prioritize mining. A third group is pursuing hybrid strategies, trying to balance Bitcoin production with AI-driven workloads.
Network Resilience Remains, but the Industry Is Splitting
Despite worsening miner margins, the Bitcoin network itself remains resilient. CoinShares noted that hashrate exceeded 1 ZH/s at its peak in 2025 before easing back and stabilizing around 1,020 EH/s. The firm still expects long-term growth, projecting hashrate could reach 1.8 ZH/s by the end of 2026 and 2 ZH/s in early 2027.
Geographically, the United States, China, and Russia continue to dominate global mining, accounting for roughly 68% of total hashrate, while countries such as Paraguay and Ethiopia are gaining share. CoinShares stressed that mining economics remain tightly linked to Bitcoin’s price. A recovery toward $100,000 could lift hashprice and margins, while prolonged weakness may force more operators offline. For now, the sector appears to be dividing into two camps: traditional miners and hybrid infrastructure firms combining Bitcoin mining with AI workloads.