Bitcoin mining profitability has collapsed to two-year lows as record network difficulty and vanishing fees create an industry crisis. The sector is rapidly dividing between traditional miners facing existential threats and those successfully pivoting to AI infrastructure services, with hashprice dropping 19% in just one month to $42.14 per terahash per day despite Bitcoin trading around $101,500. This structural shift is fundamentally rewriting the business model for cryptocurrency mining operations worldwide, creating a stark divide between those riding out Bitcoin’s hardest math problem and those rewriting it entirely through AI.
about Bitcoin Mining Crisis: AI Pivot Splits Industry Amid Profit Plunge
CORZ
CoreWeave’s $9B Bitcoin Miner Deal Rejected by Shareholders
Core Scientific shareholders have rejected a proposed $9 billion all-stock merger with AI computing firm CoreWeave, terminating what would have been one of the largest transactions in the high-power computing space. The shareholder rejection sent CoreWeave’s stock down nearly 4% while Core Scientific’s shares rose slightly, reflecting investor concerns that the deal undervalued the Bitcoin miner despite ongoing profitability challenges in the cryptocurrency mining industry.
about CoreWeave's $9B Bitcoin Miner Deal Rejected by ShareholdersMarathon Buys 400 BTC Post-Crash as Miner Strategies Diverge
Marathon Digital Holdings (MARA) executed a strategic $46 million Bitcoin acquisition during October’s market downturn, purchasing 400 BTC while most miners remained defensive. This contrarian move expanded MARA’s Bitcoin treasury to 53,250 BTC valued at over $6 billion, highlighting how well-capitalized miners are exploiting market volatility while others face liquidity pressures. The acquisition reveals a fundamental divergence in mining company strategies as hashprice compression separates operators with strong balance sheets from those forced to monetize production.
about Marathon Buys 400 BTC Post-Crash as Miner Strategies DivergeBitcoin Miners Rally After Trump Trade War Confusion
Bitcoin mining stocks staged a remarkable recovery on Monday, erasing losses from Friday’s flash crash that was triggered by former President Donald Trump’s misinterpretation of China’s new export controls. The swift rebound saw leading miners like Bitfarms and Cipher Mining post double-digit gains as markets corrected what analysts described as an overreaction to Trump’s initial tariff announcement, which he later walked back after realizing his misunderstanding of the Chinese trade measures.
about Bitcoin Miners Rally After Trump Trade War ConfusionBitcoin Hashrate Hits Record 1,073 EH/s, Squeezing Miners
Bitcoin’s hashrate surged to an unprecedented 1,073 EH/s on September 23, marking a 21% monthly and 675% yearly increase. This explosion in computational power reflects massive capital expenditure and industrial scaling in the mining sector. However, the rapid rise may soon pressure less efficient public mining companies as network difficulty adjusts.
about Bitcoin Hashrate Hits Record 1,073 EH/s, Squeezing MinersBitcoin Miners Hit Record $39B Market Cap Amid AI Pivot
JP Morgan analysts report that 13 U.S.-listed Bitcoin miners achieved a record $39 billion market cap in August as major players expand into high-performance computing for artificial intelligence. This diversification strategy responds to declining mining profitability caused by increased network difficulty, higher operational costs, and reduced block rewards following April 2024’s halving event. While Bitcoin mining has become less profitable despite price increases, the transition to AI data centers requires significant infrastructure upgrades, including more complex HVAC systems. Companies like Hut 8 are developing gigawatt-scale facilities for non-mining purposes, while others like Hive Digital Technologies are adopting dual business models to capture value from both cryptocurrency mining and computing services.
about Bitcoin Miners Hit Record $39B Market Cap Amid AI Pivot$9B Crypto Merger: Core Scientific & CoreWeave
In a landmark deal, Bitcoin miner Core Scientific and AI powerhouse CoreWeave unveiled a $9 billion all-stock merger, one of the largest crypto-adjacent M&A transactions. Bitcoin spot ETFs recorded $1.17B in net inflows, their second-best day since launch, with BlackRock’s IBIT leading the charge. BIT Mining’s stock soared 83% after announcing a $300M pivot to Solana, though gains moderated later. Strategy, Bitcoin’s largest corporate holder, paused its weekly BTC purchases but launched a $4.2B preferred stock offering. Meanwhile, Robinhood aims to tokenize private equities, and Coinbase explores AI-powered trading integrations.
about $9B Crypto Merger: Core Scientific & CoreWeaveBitcoin Miner Exec Pay Faces Shareholder Backlash
A VanEck analysis shows Bitcoin mining executives received record compensation in 2024, with average pay packages doubling to $14.4 million – primarily in equity (89% of total pay). However, shareholder approval rates cratered to just 64%, with three major miners (Riot, Marathon, Core Scientific) receiving less than 40% support. The report highlights concerns about excessive dilution from equity grants (some exceeding 10% of shares outstanding) and short vesting periods. While some miners are adopting performance-based stock units, most compensation remains poorly aligned with long-term value creation. VanEck suggests reforms like tying pay to mining efficiency metrics and extending vesting schedules to address investor concerns.
about Bitcoin Miner Exec Pay Faces Shareholder BacklashCoreWeave’s $9B Core Scientific Deal Sparks Stock Dip
CoreWeave’s acquisition of Core Scientific in a $9 billion all-stock deal has drawn skepticism from analysts, causing CRWV shares to drop 3.6% at market open. Despite the decline, CoreWeave maintains a $75 billion market cap, fueled by a 288% surge since its March IPO. D.A. Davidson analyst Gil Luria expressed doubts about the deal’s financial impact, contributing to selling pressure. The move highlights CoreWeave’s pivot from crypto mining to AI infrastructure, though market reactions suggest uncertainty about its long-term benefits.
about CoreWeave's $9B Core Scientific Deal Sparks Stock DipCoreWeave Buys Core Scientific for $9B in AI Push
CoreWeave (CRWV) has finalized its acquisition of Core Scientific (CORZ) in a $9 billion all-stock deal, marking a major expansion in data center capacity for AI and high-performance computing (HPC). Under the agreement, Core Scientific shareholders will receive 0.1235 shares of CoreWeave Class A common stock for each CORZ share. The acquisition grants CoreWeave control over approximately 1.3 GW of gross power across Core Scientific’s data centers, with an additional 1 GW+ potential for expansion. This strategic move positions CoreWeave to meet growing demand for AI and HPC infrastructure while leveraging Core Scientific’s established mining footprint.
about CoreWeave Buys Core Scientific for $9B in AI PushBitcoin Miners Struggle Amid Market Decline and Halving Impact
Bitcoin mining stocks are facing significant challenges as prices decline, with a 22% drop in market capitalization reported in February. The recent halving event has halved mining rewards, leading to a 46% average drop in revenues and a 57% decline in gross profits. Despite optimism about AI-related business opportunities, miners are still under pressure from macroeconomic uncertainties and fluctuating demand for high-performance computing.
about Bitcoin Miners Struggle Amid Market Decline and Halving ImpactBitcoin miners pivot to AI and chip sales ahead of earnings reports
Analysts are focusing on Bitcoin miners’ revenues from AI computing and chip sales ahead of their Q4 earnings, as traditional mining profits decline due to the upcoming halving. Companies like Riot Platforms and Bitdeer are exploring adjacent business lines, with strong demand for ASIC chips and AI services. Riot is also reassessing its expansion plans to capitalize on high-performance computing opportunities, while Bitdeer is investing in infrastructure to support growth.
about Bitcoin miners pivot to AI and chip sales ahead of earnings reports