Bitcoin miners will struggle with the allure of AI in 2026, experts say

Core Insights - Bitcoin miners are currently facing significant challenges due to low hash prices and depressed cryptocurrency prices, impacting profit margins [1][2] - Transitioning to providing processing power for artificial intelligence (AI) is becoming an attractive alternative for miners [1][5] Group 1: Current Challenges - Hash price has reached an all-time low, affecting revenue per unit of computing power for miners [1] - Bitcoin's price is around $87,000, which is 30% below its October all-time high, making it difficult for miners to remain profitable [3] - Many top miners were breaking even at approximately $90,000 per Bitcoin, indicating that lower prices lead to reduced rewards for maintaining the blockchain [3] - Decreasing daily transaction fees and fewer transactions due to institutional adoption have further strained miners' profitability [4] Group 2: AI Transition - Miners are increasingly pivoting towards high-performance computing to adapt to the unprofitability of Bitcoin mining [5] - Companies like Bitfarms have announced plans to wind down mining operations in favor of focusing on AI infrastructure [5] - Analysts note that Bitcoin miners are becoming integral to the AI value chain, providing necessary infrastructure for AI data centers [6] - Many public miners are rebranding themselves as "compute" or "digital infrastructure" companies, balancing between mining and AI computing based on profitability [6]