Bitcoin (BTC) April 2024 minimize block reward can be halved from 6.25 BTC to three.125 BTC, compressing hash costs and forcing Bitcoin miners to rethink their enterprise fashions.
As a substitute of ready for the payment market to rescue margins, the biggest operators have begun signing offers to lease infrastructure to AI tenants.
Core Scientific has dedicated to produce 500 megawatts of energy to CoreWeave for $8.7 billion over 12 years. Cipher locked in 168 MW with Fluidstack for $3 billion over 10 years with Google’s backstop obligations.
These offers are based mostly on the calculation that the identical inputs that energy SHA-256 ASICs can generate extra income per megawatt-hour if they’re directed towards high-performance computing.
The query is how a lot non-Bitcoin income miners might want to relieve promoting stress on authorities bonds, what’s going to occur to the community’s hashrate as capability shifts, and which operators have the stability sheets to carry out.
Bitcoin miners management all the pieces wanted for AI computing, together with low cost electrical energy, industrial land, cooling infrastructure, and operational experience.
The income curves are totally different. Mining ties income to hash value and coin value. AI colocation delivers contracted greenback income per kilowatt month. What issues is the margin comparability in {dollars} per megawatt hour, and when the hash value is compressed, the unit economics favor internet hosting.
Safety budgets beneath stress
Hashprice measures a miner’s income per petahash per day. When it falls, miners shut down their machines or promote their Bitcoins to cowl authorized prices.
The community’s safety funds is equal to dam subsidies plus charges in Bitcoin phrases, however its greenback worth has turn into extra risky for the reason that halving.
A brief spike in charges when Runes launched in the course of the halving block confirmed how on-chain demand can influence hash costs, however exterior of these spikes, charges have been modest.
Electrical energy costs are fastened in {dollars} and earnings are earned in Bitcoin. If hash costs stay at $50 per petahash per day, a contemporary fleet of Antminer S21 class machines operating at 17.5 joules per terahash will generate roughly $119 per megawatt hour.
After subtracting the $50 per MWh electrical energy value, the money margin is $69 per MWh. The mannequin is operational, however simply barely.
When you enhance the hash value to $75 per petahash per day, the income will increase to $179 per MWh, supplying you with a money revenue of $129 per MWh.
The distinction between survival and profitability is slender and relies on components exterior the miner’s management, equivalent to BTC value, community problem, and payment velocity.
AI internet hosting makes use of the identical infrastructure that runs ASICs and affords an answer with dollar-denominated contracts that don’t fluctuate with hash costs and are locked in over a number of years.
The place Bitcoin miners meet AI
Bitcoin miners and AI operators require the identical infrastructure, together with reasonably priced energy, proximity to substations, industrial cooling, fiber optic interconnects, and experience to keep up uptime.
Core Scientific’s CoreWeave contract prices about $121 per kilowatt for internet hosting. Cipher’s Fluidstack contract prices roughly $149 per kW per 30 days.
These are contracts signed with creditworthy counterparties and aren’t bold projections. The income construction sometimes separates internet hosting charges and energy prices, because the tenant reimburses the facility consumed and the operator earns a set payment per kilowatt.
This transfers commodity danger to tenants and transforms miners’ income into infrastructure-as-a-service.
Assuming an influence utilization effectivity of 1.2, a rack fee of $120 to $180 per kW per 30 days corresponds to a facility income depth of roughly $139 to $208 per megawatt hour.
Since electrical energy is handed by way of, a lot of its income is allotted to money movement excluding non-electricity working bills.
Evaluate this to SHA-256 mining at $75 per petahash per day. Income depth is $179 per MWh, however each greenback of electrical energy prices are paid upfront.
The internet hosting mannequin eliminates Bitcoin value volatility and payment volatility, and as a substitute provides you multi-year visibility. For debt-ridden miners, their money movement profile favors financing.
Unit economics and monetary coverage
A 100 MW web site operating SHA-256 at an electrical energy fee of $75 per petahash per day and $50 per MWh would generate a money margin of roughly $129 per megawatt hour, which works out to roughly $11.3 million per 12 months.
When you lease the identical 100 MW to an AI tenant for $150 per kW per 30 days, your facility income depth can be roughly $174 per MWh.
If the tenant pays for the electrical energy, the operator retains most of it as margin. The internet hosting construction offers considerably additional cash movement per megawatt when hash costs fall or electrical energy costs rise.
Monetary coverage is essential. MARA Holdings held as a lot as 52,000 BTC of Bitcoin, however typically didn’t promote it in any respect. Riot Platforms bought 465 BTC for about $52.6 million in September 2025 to fund enlargement. CleanSpark continues to ramp up, growing its funding to over 13,000 BTC.
Everybody faces the identical statutory expense base, together with electrical energy payments, debt repayments and salaries. Internet hosting income modifications the equation. If a miner generates $15 million per 12 months from 100 MW of AI colocation, that is $15 million with out having to promote any Bitcoin.
The Treasury can keep coin denominations with out operating out of money. When hash costs are compressed, that buffer permits miners to climate weak environments with out being compelled to promote, thereby weakening the promoting stress that sometimes happens after a halving.
Much less BTC despatched from miner wallets to exchanges means much less marginal provide.
Hashrate migration and community influence
If a major share of the hashrate is migrated to AI internet hosting and never backfilled, the community hashrate will decline till retargeting turns into troublesome and equilibrium is restored.
The safety funds in BTC stays unchanged and blocks will proceed to generate 3.125 BTC plus charges, however decrease hashrates might enhance assault prices.
The again aspect is mechanical. Assuming Bitcoin costs and charges stay fixed, a decrease community hash fee means the next hash value for the remaining miners.
In a situation the place 10% of the world’s hashrate migrates to AI internet hosting over 18 months and the community hashrate drops by roughly 10%, problem can be adjusted downward and hash costs for the remaining miners will enhance proportionately.
Miners who stick with SHA-256 will seize the upside, whereas miners who pivot to AI will safe their contracted greenback income.
There’s a trade-off between Bitcoin publicity and money movement certainty. Charges complicate evaluation. If the payment market turns into energetic by way of runes, layer 2 cost visitors, or cost quantity, hash costs can rise quickly.
Miners who migrate from SHA-256 to AI internet hosting miss out on its advantages. AI contracts present draw back safety however restrict participation in payment income surges.
The optimum technique will rely on every miner’s value construction, stability sheet, and look at of Bitcoin’s payment trajectory.
Who wins and what breaks?
Carriers with very low energy prices, scalable interconnections, and capital flexibility are the only option. Core Scientific’s post-bankruptcy reorganization pivot to HPC internet hosting illustrates how a stability sheet reset can allow strategic repositioning.
Google-backed Cipher buying and selling demonstrates the significance of reliable counterparties. Bitdeer, Iris Vitality, TeraWulf, and CleanSpark have all introduced their intention to leverage HPC, reflecting the business’s rising recognition that AI demand can monetize pent-up energy capability.
The dangers are actual. GPU cycles change, miners spend capital expenditures on infrastructure, and worth may be misplaced. Counterparty danger is a priority for smaller AI startups with out sturdy stability sheets.
In Texas, grid coverage over heavy masses is intensifying. In Texas, ERCOT’s interconnection queues are lengthy, and capability additions are lagging behind demand progress.
Miners that lease interconnection capability to AI tenants might battle to reduce as soon as Bitcoin economics enhance.
Interconnection queues are extra essential than common dialogue acknowledges. Miners with 200 MW of contracted energy and grid interconnect approval can pivot between SHA-256 and HPC based mostly on economics.
Miners ready in ERCOT’s queue can not earn cash from the positioning till they’re authorised, which might take years. Miners who moved early gained choices that late movers didn’t have.
What to look at in 2026
Over the following 12 months, it might be sensible to trace energy buy settlement bulletins, ERCOT interconnection milestones, miner steerage on non-BTC income combine, and Bitcoin payment velocity.
ERCOT’s capability report offers context for the shortfall in Texas, the place giant load actions are concentrated. Interconnect capability is turning into a binding constraint.
Pricing developments will decide whether or not persevering with to make use of SHA-256 offers the identical advantages as AI internet hosting. If rune or layer 2 visitors drives continued value will increase, hash costs may stabilize above $100 per petahash per day, permitting mining to compete with internet hosting on a risk-adjusted foundation.
If costs stay beneath management, the internet hosting mannequin wins for money movement certainty. Miners are hedging. Convert your share to AI internet hosting whereas retaining some capability for SHA-256, preserving your choices till the market reveals which mannequin is dominant.
The strategic query shouldn’t be whether or not miners will turn into AI corporations, however how they may allocate finite interconnection capability, energy contracts, and stability sheet assets between competing makes use of.
Profitable miners can each keep SHA-256 operations when the hash value warrants, scale AI internet hosting as contracts finish, and keep the flexibleness emigrate between fashions because the economic system evolves.
The query is whether or not the Bitcoin mining business will keep a disposable identification or turn into a multi-tenant energy monetization layer that occurs to guard the blockchain.
