Why AI Is Now Competing Directly With Bitcoin Mining
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According to Leon Lyu, the hashrate decline reflects miners reallocating power toward AI and high-performance computing. Bitcoin mining margins have been under pressure for over a year, pushing operators to repurpose facilities with abundant power and cooling for workloads that can offer higher and more stable returns than SHA-256 hashing.
Lyu also suggested that some manufacturers, including Bitmain, may be deploying surplus machines through indirect channels, potentially understating actual capacity in public data. Even so, the broader trend is clear: AI is no longer just adjacent to mining infrastructure — it is actively competing for the same electrical grid, reshaping the economics of Bitcoin mining in the process.
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How do they do that?