China · Bitcoin · Strait of Hormuz · Datacenter Dynamics
Global Bitcoin network hashrate drops for first time since 2020 as cryptominers seek to retrofit data centers for AI
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The global Bitcoin network hashrate has dropped for the first time since 2020, as Bitcoin miners face profitability issues and pivot towards hosting AI applications.
Key facts
- In its Bitcoin mining report Q1 2026, CoinShares said that a sharp 31 percent BTC price correction, from all-time highs of around $124,500 in early October to around $86,000 by late December
- According to digital asset management firm CoinShares, 2025 saw public Bitcoin miners announce more than $65 billion in AI and high-performance computing contracts with hyperscalers and neoclouds
- In its report, CoinShares noted there had been more than $70 billion in cumulative AI/HPC contracts announced in the public mining sector, with many becoming “data center operators that happen to mine Bitcoin
- Listed miners could derive as much as 70 percent of their revenues from AI by the end of this year, up from 30 percent today,” CoinShares said
Summary
In Q1 2026, the Bitcoin network hashrate, which is a measure of the total computational power used to mine and process transactions on the blockchain, dropped by 4 percent. According to digital asset management firm CoinShares, 2025 saw public Bitcoin miners announce more than $65 billion in AI and high-performance computing contracts with hyperscalers and neoclouds. This drop is likely due to diminishing returns on mining, as former Bitcoin miners retrofit their facilities to handle AI workloads. In its Bitcoin mining report Q1 2026, CoinShares said that a sharp 31 percent BTC price correction, from all-time highs of around $124,500 in early October to around $86,000 by late December, with compressed hash prices at five-year lows.