Bitcoin News Today: Bitcoin Transforms from Digital Gold to DeFi and AI Engine

The Bitcoin ecosystem is undergoing a transformative phase as liquidity from the world's largest cryptocurrency flows into decentralized finance (DeFi) platforms and traditional miners pivot toward high-performance computing (HPC) and artificial intelligence (AI). These shifts highlight the growing complexity of Bitcoin's role beyond mere store-of-value speculation, with industry players increasingly positioning it as a foundational asset for financial infrastructure.

The latest development comes as Wrapped Bitcoin (WBTC) expands its presence to Hedera, a blockchain network with a $7 billion market capitalization. This move is part of a broader trend linking Bitcoin to DeFi protocols, enabling users to leverage their BTC holdings for lending, trading, and yield generation.

Jacob Phillips, co-founder of liquid staking protocol Lombard Finance, emphasized at the Bitcoin 2025 conference that "Bitcoin DeFi is about building a trustless, permissionless financial system around Bitcoin, turning it into an active financial instrument, not just a vault." Binance has also endorsed the concept, dubbing it "BTCFi," and suggesting it could drive new adoption of Bitcoin according to analysis.

Meanwhile, traditional Bitcoin mining operations are facing existential challenges. Bitfarms (BITF), a Canadian mining company, announced plans to wind down its Bitcoin mining activities in favor of HPC/AI infrastructure. CEO Ben Gagnon stated that converting the firm's Washington site to GPU-as-a-Service could generate more net operating income than mining ever did, positioning the company to fund operations and debt service as it phases out Bitcoin mining by 2027. This strategic pivot reflects the sector's growing pains, as energy costs and regulatory uncertainty make mining less viable compared to AI's high-margin potential.

In contrast, demand for Bitcoin mining services remains robust. Singapore-based cloud miner BitFuFu reported a 100% year-over-year revenue increase in Q3 2025, driven by surging interest in cloud mining and equipment sales. Total revenue reached $180.7 million, with cloud mining contributing $122 million. The company attributed the growth to Bitcoin's rising price, which averaged $114,500 in Q3 compared to $61,000 the previous year. BitFuFu's user base also expanded by over 40%, and its network hashrate hit 1.19 billion, up from 687.19 million a year ago.

These developments underscore Bitcoin's dual identity: a volatile asset for speculative trading and a critical infrastructure component for emerging financial and technological ecosystems. As DeFi protocols mature and traditional players adapt to new market realities, the cryptocurrency's role as a "digital gold" narrative is increasingly being challenged by its utility in building decentralized financial systems and powering AI-driven infrastructure.