The U.S. Bitcoin mining<\/a> industry appears to be losing ground in the competition for power as artificial intelligence (AI<\/a>) companies move aggressively to secure long-term energy infrastructure, according to a new report from GoMining Institutional.<\/p>\n The result of this shift in power demand, driven by AI firms securing energy capacity once used by miners, is a deceleration in domestic hashrate growth and a strategic rethinking among some of the sector\u2019s largest players, according to analysts at GoMining Institutional.<\/p>\n Backed by capital reserves and less sensitive to electricity pricing, AI and high-performance computing (HPC) firms are now increasingly outbidding Bitcoin miners for access to power, data center space, and grid capacity. According to GoMining Institutional\u2019s latest \u201cH1 Bitcoin Mining Market Review and Key Trends\u201d report, the shift is forcing miners<\/a> to pivot away from expansion and toward new business models.<\/p>\n Fakhul Miah, managing director at GoMining Institutional, says that the story of H1 2025 is \u201cthe story of two tech revolutions colliding.\u201d<\/p>\n \u201cWhile Bitcoin saw unprecedented validation from Wall Street and Washington, miners on the ground faced a new threat from the AI industry\u2019s insatiable demand for energy,\u201d Miah added.<\/p>\n AI firms are locking in large-scale energy deals once sought by miners. Crypto investment firm Galaxy Digital<\/a>, for example, converted much of its West Texas Helios campus from Bitcoin mining to AI computing. Its partner, CoreWeave, expanded its lease from 133 MW to nearly 400 MW.<\/p>\n Riot Platforms paused a 600-MW mining buildout in Texas and is now evaluating AI and HPC options at the site. Iris Energy capped its mining fleet and shifted to its AI cloud business, which now brings in over $25 million annually.<\/p>\n Bitfarms, a publicly listed mining firm, has also shifted its strategy. While the company remains \u201cbullish on mining economics,\u201d its priority now is to \u201ccreate long-term shareholder value through U.S. energy and HPC expansion,\u201d said CEO Ben Gagnon.<\/p>\n As GoMining Institutional puts it, the wave of reallocation signals a structural shift in how digital infrastructure is monetized. Miners are no longer just competing with each other but with AI firms that can extract more value from the same megawatt. In response, some firms are rebranding themselves as data center providers or adopting mixed-revenue models.<\/p>\n The broader impact is beginning to show in hashrate metrics too. While the U.S. still leads the world in Bitcoin mining, accounting for 36%<\/a> of global hashrate according to Hashrate Index\u2019s Global Hashrate Heatmap, the pace of growth has slowed. Bitcoin\u2019s last halving in 2024 \u2014 which reduced<\/a> block rewards from 6.25 BTC to 3.125 BTC \u2014 has further tightened margins and heightened sensitivity to electricity pricing.<\/p>\n\u2018Tech Revolutions Colliding\u2019<\/h2>\n
Untapped Markets<\/h2>\n
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