Analysts at CoinShares calculated that, for the first time, public miners collectively fell below their breakeven point, with production costs exceeding market prices.

Market measures and price gap

CoinShares estimates that miners spent about $75 500 to produce one bitcoin, while the quarter closed with bitcoin trading at $58 400, a gap of roughly $17 000, or 29%.

Hashprice, the revenue per unit of hash power, hit a historical low in June at $27.7 per PH/s per day, compared with roughly $63 a year earlier.

By September, bitcoin had recovered to about $77 000, but remained well below its peak of $126 080.

Miners pivoting away from proof-of-work

Faced with lower mining returns, several firms are repurposing capacity or exiting mining. Core Scientific paid $41.9 million to terminate a mining contract early, according to reports.

• Keel, formerly Bitfarms, halted all U.S. sites.
• IREN plans to exit mining by the end of 2026.
• Cipher Digital intends to leave mining by the end of 2027.

Why AI workloads outcompete mining

Analysts point to a simple arithmetic: a megawatt serving AI clients generates about $1.5 million in profit, while the same capacity devoted to mining yields roughly $500 000. AI customers also sign long-term deals of up to 15 years, improving revenue certainty.

As a result, electricity previously used for producing so-called digital gold is increasingly redirected to neural networks and data-center workloads.

Who may still expand mining

CoinShares expects that only flexible operators with adaptable infrastructure will grow mining capacity; the analysts specifically name Riot, MARA, HIVE and Bitdeer as likely candidates to expand selectively.