Bitcoin mining profitability has reached a historic low, according to ChainCatcher. Coinshares reports that the hash price fell to approximately $28-30 per PH/s/day in the first quarter of 2026, marking a new post-halving low. By the fourth quarter of 2025, the weighted average cash cost per Bitcoin is expected to reach around $80,000, with approximately 15-20% of mining machines operating at a loss globally.
The transition of mining companies towards artificial intelligence (AI) is no longer optional. Publicly listed mining companies have announced AI/HPC contracts exceeding $70 billion, and by the end of 2026, up to 70% of their revenue could be derived from AI. Some mining companies are incurring significant debt to support AI development, fundamentally altering the industry's risk landscape.
Valuations within the mining sector have become notably divided. Companies securing HPC contracts have an EV/NTM revenue multiple of 12.3, while pure mining companies stand at 5.9. The industry is now split between infrastructure companies and mining companies, each facing distinctly different prospects.