“AI pays $200-500 MWh vs Bitcoin mining at $57-129 MWh” is an incomplete comparison, what actually matters is what either of these things COSTS per MWh relative to what they make/pay. The perennially negative economics of major AI providers suggests that hyerescaled AI costs significantly more than what it “makes.” Many of these Miner + AI deals are seeing miners take on capex ownership of GPUs and ongoing AI operations.
This brings us to the second important point that the cost of AI services to day are massively subsidized (by VC and private credit fluff), perhaps the most subsidized thing ever, and even that these subsidized price levels there is not enough organic, paying customer demand to make these operations profitable.
Bitcoin be fine. US PubCo miners pilling into the AI narrative just as it’s breaking, will be extra rekt.
#Plebchain
quotingBitcoin miners are pivoting to AI hosting. Everyone thinks that's bearish. It's the opposite.
nevent1q…h7pz
Hut 8 signed a $7 billion AI data center lease backed by Google. Core Scientific is being acquired by CoreWeave for $9 billion. Cipher Mining cut its hashrate 51% to build AI infrastructure. AI hosting generates $200-$500 per MWh vs Bitcoin mining's $57-$129.
So miners are diversifying into the most profitable use of energy on the planet while keeping their Bitcoin operations running. They're building revenue streams that let them mine through bear markets without panic-selling their BTC.
And for the miners who do leave? That's the part everyone forgets.
Bitcoin has an immune system called the difficulty adjustment. When miners leave, difficulty drops. Mining gets cheaper for everyone who stays. Margins improve. The network rebalances. It's done this every single cycle for 16 years.
China banned mining in 2021. Hash rate dropped 50% overnight. Fully recovered within 8 months. Hit new all-time highs.
The "AI is killing Bitcoin" narrative assumes mining is a static system. It's the most adaptive energy market on Earth.
