Bitcoin Mining Hit Its Breaking Point — Now AI Is Taking Over Its Racks | US Crypto News
Welcome to the US Crypto News Morning Briefing—your important rundown of a very powerful developments in crypto for the day forward.
Grab a espresso to learn how the Bitcoin mining sector is altering. Skyrocketing prices, collapsing charges, and the rise of AI are forcing miners to rethink their playbook, turning once-stable operations right into a battleground for next-generation compute energy.
Crypto News of the Day: AI Takes Over Bitcoin Mining Racks as Costs Explode and Profitability Craters
The CoinShares Bitcoin Mining Report Q4 2025 reported that the sector has hit its breaking level. Production prices have surged to all-time highs, hash worth has collapsed, and synthetic intelligence (AI) is now outbidding miners for their very own infrastructure, triggering probably the most dramatic structural shift the sector has ever confronted.
The trade entered Q2 2025 with a brutal new actuality:
- The common money price to mine one BTC amongst public miners jumped to roughly $74,600,
- All-in prices soared to $137,800.
- Transaction charges, as soon as a buffer for miner income, fell under 1% of block rewards in May and June, the weakest contribution because the 2024 halving.
Yet whilst margins collapsed, the Bitcoin community continued to climb, smashing by 1 Zetta hash/s for the primary time in August.
Public miners contributed solely about 80 EH/s of year-to-date progress, which means a lot of the growth is now coming from non-public operators, sovereign miners, and well-capitalized vitality gamers with vastly cheaper energy.
The end result: miners are being diluted by hashrate progress they’re now not driving.
AI Moves In — And It Pays 10–20× More Per Megawatt
A far larger disruption is unfolding on the infrastructure degree. Industrial-scale mining campuses, comprising 100MW to 1GW websites, share practically equivalent energy, cooling, and rack density necessities with trendy AI datacenters.
That overlap has turned mining facilities into prime targets for hyperscalers.
Deals from Google–TeraWulf, Google–Cipher, and multi-site agreements with Fluidstack sign the identical course, that big-tech is shifting into miner-built capability at a premium.
The math explains why. Bitcoin mining yields roughly $1 million per megawatt, whereas AI compute generates $10 million to $20 million per megawatt.
No miner can ignore that unfold.
Industry Splits: AI Megacampuses vs. Mobile, Ultra-Low-Cost Miners
The sector is now diverging into two clear fashions:
- 1. Megascale miners → absolutely or partially changing to AI/HPC
These amenities can improve their electrical topology and uptime requirements to satisfy enterprise necessities. They’re signing decade-long contracts and shifting from risky block rewards to secure, capacity-based income.
2. Low-cost, cellular miners → shifting to stranded vitality
Miners unable to compete with AI are shifting off-grid: flare fuel, distant hydro, and surplus renewables. Portable rigs are being deployed in every single place low cost vitality exists, echoing mining’s early decentralized roots.
This migration marks a long-term reshaping of the trade, and never a short lived cycle.
According to a CoinShares report:
- Hashprice averaged roughly $50 per PH/s/day all through Q2, persevering with its post-halving slide.
- With problem rising, charges stagnant, and Bitcoin trading mostly sideways, older ASIC fleets have been pressured offline.
Analysts anticipate hashprice to stay range-bound between $37–55 per PH/s/day by 2028 until BTC rallies far sooner than hashrate progress.
A Structural Shift: AI Outbids Bitcoin
For the primary time in Bitcoin’s historical past, miners are being priced out of their very own infrastructure.
AI’s superior economics, hyperscaler deal movement, and the rising price of commercial mining are pushing the trade right into a everlasting transformation.
The Bitcoin community stays sturdy, the place hashrate remains to be climbing, however the enterprise of mining is being rewritten quick.
This places miners at an deadlock, to both go massive into AI, or go distant into stranded energy.
Chart of the Day
Byte-Sized Alpha
Here’s a abstract of extra US crypto information to observe right this moment:
- Yi He appointed Binance co-CEO amidst authorized and regulatory challenges.
- Kevin Hassett as Trump’s Fed decide: How will his policy impact crypto in 2026?
- Ethereum Fusaka goes live today: Can it set off a Pectra-like rally?
- Is Bitcoin prepared to finish its 5-week downtrend or face rejection at $95,000?
- Vanguard ‘degen effect’ fuels 10% surge for Bitcoin in explosive rebound.
- PENGU token jumps 30% on NHL Deal, however $108 million sell-off sparks fear.
- Binance marks 3 altcoins for delisting: Everything you have to know.
- V-shape bounce, uncommon Bitcoin sign, $13 billion Fed shock: What’s coming?
Crypto Equities Pre-Market Overview
| Company | At the Close of December 2 | Pre-Market Overview |
| Strategy (MSTR) | $181.33 | $185.83 (+2.48%) |
| Coinbase (COIN) | $263.26 | $269.39 (+2.33%) |
| Galaxy Digital Holdings (GLXY) | $25.36 | $25.90 (+2.13%) |
| MARA Holdings (MARA) | $11.91 | $12.27 (+3.02%) |
| Riot Platforms (RIOT) | $15.22 | $15.55 (+2.17%) |
| Core Scientific (CORZ) | $15.82 | $16.03 (+1.33%) |
The publish Bitcoin Mining Hit Its Breaking Point — Now AI Is Taking Over Its Racks | US Crypto News appeared first on BeInCrypto.
