CoinShares: Bitcoin mining companies approaching breakeven, accelerating their shift towards AI business Odaily Planet Daily News: CoinShares report shows that Bitcoin mining companies are facing significant profit pressure from the end of 2025 to the beginning of 2026 due to the decline in Bitcoin prices, the near historical high of network computing power, and the decline in hashprice. In the fourth quarter of 2025, the average cash cost per Bitcoin for listed mining companies has risen to approximately $79995, while the price of computing power has dropped from around $36-38/PH/s/day to the $28-30 range in the first quarter of 2026, resulting in a continuous compression of industry profit margins. The report points out that this is one of the most challenging stages since the halving in 2024. During this period, the price of Bitcoin fell from a high of about $125000 to about $86000. Coupled with intensified competition for computing power, some mining companies have approached or fallen below the breakeven line. The industry has shown some signs of "clearing", including three consecutive reductions in mining difficulty (the first since July 2022), as well as listed mining companies reducing their holdings of over 15000 BTC reserves. Companies such as Core Scientific, Bitdeer, Riot, and MARA have all engaged in selling behavior. In this context, mining companies are significantly accelerating their transformation towards AI and high-performance computing (HPC). CoinShares expects that by the end of 2026, the proportion of revenue from AI business for listed mining companies may increase from the current about 30% to 70%, and the industry has announced over $70 billion in related contracts. IREN, TeraWulf, Core Scientific, Cipher, Hut 8 and other companies are accelerating their transformation into data center operators, while MARA and others are still primarily focused on mining. At the same time, AI transformation has also driven up industry leverage levels, such as IREN issuing approximately $3.7 billion in convertible bonds, TeraWulf's total debt reaching $5.7 billion, and Cipher issuing $1.7 billion in senior secured bonds, resulting in changes in industry risk structure. Looking ahead to the future, CoinShares believes that mining profits will be highly dependent on the price trend of Bitcoin: if BTC rebounds to $100000, the computing power price may rise to around $37/PH/s/day; If it returns to the high of 126000 US dollars, it may rise to about 59 US dollars; On the contrary, if it remains below $80000 for a long time, industry pressure will continue, but the suspension of some mining institutions may help to shrink supply and stabilize returns. （The Block）