Some BTC mining companies are indeed shifting to AI, but it’s understandable—this isn’t something unique to this bear market. Currently, about 15-20% of global mining capacity is operating at a loss (according to Coinshares data). Mining companies running outdated machines or facing high electricity costs are having a tough time. At the same time, some miners, in order to stay afloat or pivot, are redirecting idle electricity or data centers toward AI training/inference. AI contracts can provide more stable and predictable income. Recent developments show that some mining companies have already signed AI/HPC contracts totaling over $70 billion. This has led to some miners generating more revenue from AI than from mining. Additionally, the surge in AI demand aligns well with the existing advantages of mining companies (cheap electricity contracts, ready-to-use data centers, cooling systems, and operational expertise). For some miners, this isn’t about abandoning BTC or mere speculation—it’s a survival strategy. We’ve seen similar things happen before. In 2018/19 or 2022, miners also experimented with cloud services, other crypto mining, or energy projects. Almost every halving cycle sees a number of miners capitulate, but those who remain tend to reap better rewards in the future. The miners who stick around are often the more efficient ones, with lower electricity costs, newer machines, and less leverage. Once some of the hashrate is cleared out, the survivors benefit from greater rewards. There are also purist miners who haven’t shifted to AI. Their perspective is that selling hashrate and BTC to chase AI is a short-sighted move (unless under economic pressure). In the long run, mining is still more appealing. BTC’s security and scarcity ultimately rely on the ASIC network, while AI is based on general-purpose computing, which faces fiercer competition and faster depreciation. Of course, the reality is harsh. If BTC stays below $80,000 for an extended period, it will put more pressure on mining companies, leading to more capacity being shut down.