Computing power plummeted 13.4%: mining companies abandoned coins and switched to AI

According to Woofun AI, the computing power of listed Bitcoin mining companies dropped by 13.4%, and the contraction rate far exceeded the overall level of the Bitcoin network. This significant divergence shows that capital and electricity resources are shifting from cryptocurrency mining to artificial intelligence-related infrastructure on a large scale, and the underlying logic of the industry is being fundamentally restructured.

According to data compiled by Woofun AI, excluding Bitdeer (BTDR.US), which continues to expand, the computing power of the remaining listed mining companies plummeted from 324.6 EH/s to 255.9 EH/s within six months, a drop of 21.2%. In contrast, the computing power of Bitdeer (BTDR.US) bucked the trend and increased by 44% to 63 EH/s, while the average computing power of the Bitcoin network declined by only 10.6% during the same period.

This structural differentiation reveals huge differences in the strategic choices of leading companies. Most traditional mining companies are actively divesting or reducing mining production capacity.

Drastic changes in the revenue structure confirm the trend of shifting computing power. Core Scientific (CORZ.US)'s second-quarter server hosting business revenue reached US$136.7 million, far exceeding Bitcoin mining revenue of US$27.5 million; TeraWulf (WULF.US) high-performance computing business revenue of US$31.9 million, which also surpassed the mining business of US$12.8 million.

Although Riot Platforms (RIOT.US) and Bitdeer (BTDR.US) are still in the early stages of transformation, and mining still accounts for the majority of their revenue, the rapid rise in the share of non-mining revenue has established a new paradigm for the industry.

BlocksBridge notes that the current pullback marks the end of the expansion cycle after China's Bitcoin mining ban in 2021. At the time, the ban caused a sharp drop in the computing power of the Bitcoin network, prompting mining companies to move overseas and expand in North America through financing and access to electricity.

However, after experiencing a halving cycle, meager mining profits compounded strong demand for artificial intelligence infrastructure since 2022, forcing listed mining companies to completely refocus their business.