Bitcoin News Today: Bitcoin Miners Shift to AI as Profits Plunge and Centralization Risks Rise

Bitcoin mining profitability fell for the fourth consecutive month in November, with JPMorgan reporting a 16% decline in the combined market capitalization of 14 U.S.-listed miners to $59 billion. The network hashrate, a key indicator of mining competition, dropped 1% to 1,074 exahashes per second (EH/s), following a record high in October. Miners earned an average of $41,400 per EH/s in daily block reward revenue, down 14% month-on-month and 20% year-on-year. This marks the most sustained period of declining profitability since the industry's rapid expansion post-2021 China ban.

The downturn reflects broader structural challenges. Bitcoin's hashprice-the revenue per unit of computing power-slumped to $34.49 per petahash on Nov. 21, 2025, the lowest since tracking began. This collapse has forced operators to shutter unprofitable rigs or repurpose facilities into artificial intelligence (AI) compute hubs. Major firms like Bitfarms and CleanSpark are accelerating this pivot, with Bitfarms planning to convert 341 megawatts of mining capacity into AI infrastructure by 2027. The shift is driven by AI workloads generating 2–5 times more revenue per kilowatt-hour compared to Bitcoin mining, according to industry analysts.

Despite the grim outlook, some miners have shown resilience. American Bitcoin Corp reported a 7 percentage-point rise in gross margin to 56% in Q3 2025, driven by its asset-light model and a 25 exahash mining capacity. Cipher Mining, meanwhile, secured $830 million in AI hosting contracts and raised $333 million in senior notes to expand its Texas facility according to SEC filings. However, smaller operators remain vulnerable. CME FedWatch data indicates an 80% probability of a December rate cut, yet Bitcoin stabilized near $87,000, reflecting cautious positioning amid macroeconomic uncertainty.

The industry's transformation has broader implications. A prolonged exodus of large-scale miners to AI could reduce Bitcoin's hashrate growth, delay difficulty adjustments, and increase centralization risks. For now, smaller miners benefit from reduced competition, but analysts warn the trend could reshape the mining landscape akin to the 2021 China ban.