Introduction to the US Crypto News Morning Briefing
The Bitcoin mining sector is undergoing significant changes as a result of skyrocketing costs, collapsing fees, and the rise of artificial intelligence (AI). These aspects are forcing miners to rethink their strategies, turning once-stable operations right into a battleground for next-generation compute power.
Crypto News of the Day: AI Takes Over Bitcoin Mining Racks
The CoinShares Bitcoin Mining Report Q4 2025 reveals that the sector has hit its breaking point. Production costs have surged to all-time highs, hash price has collapsed, and AI is now outbidding miners for their very own infrastructure. This has triggered essentially the most dramatic structural shift the sector has ever faced.
Key Statistics
- The average money cost to mine one BTC amongst public miners jumped to roughly $74,600.
- All-in costs soared to $137,800.
- Transaction fees, once a buffer for miner revenue, fell below 1% of block rewards in May and June, the weakest contribution for the reason that 2024 halving.
The Rise of AI in Bitcoin Mining
The Bitcoin network continued to climb, smashing through 1 Zetta hash/s for the primary time in August. However, public miners contributed only about 80 EH/s of year-to-date growth, meaning many of the expansion is now coming from private operators, sovereign miners, and well-capitalized energy players with vastly cheaper power.
AI Moves In — And It Pays 10–20× More Per Megawatt
Industrial-scale mining campuses are being targeted by hyperscalers as a result of their an identical power, cooling, and rack density requirements with modern AI datacenters. Deals from Google–TeraWulf, Google–Cipher, and multi-site agreements with Fluidstack signal the identical direction, that big-tech is moving into miner-built capability at a premium. The math explains why: Bitcoin mining yields roughly $1 million per megawatt, while AI compute generates $10 million to $20 million per megawatt.
Industry Splits: AI Megacampuses vs. Mobile, Ultra-Low-Cost Miners
The sector is now diverging into two clear models:
- Megascale miners → fully or partially converting to AI/HPC. These facilities can upgrade their electrical topology and uptime standards to satisfy enterprise requirements.
- Low-cost, mobile miners → shifting to stranded energy. Miners unable to compete with AI are moving off-grid: flare gas, distant hydro, and surplus renewables.
A Structural Shift: AI Outbids Bitcoin
For the primary time in Bitcoin’s history, miners are being priced out of their very own infrastructure. AI’s superior economics, hyperscaler deal flow, and the rising cost of commercial mining are pushing the industry right into a everlasting transformation. The Bitcoin network stays strong, where hashrate remains to be climbing, however the business of mining is being rewritten fast.
Chart of the Day
The evaluation of the associated fee to mine Bitcoin shows the increasing costs and decreasing profitability of mining.
Byte-Sized Alpha
Here’s a summary of more US crypto news to follow today:
Crypto Equities Pre-Market Overview
| The pre-market overview of crypto equities shows the next prices: | Company | At the Close of December 2 | Pre-Market Overview |
|---|---|---|---|
| Strategy (MSTR) | $181.33 | $185.83 (+2.48%) | |
| Coinbase (COIN) | $263.26 | $269.39 (+2.33%) | |
| Galaxy Digital Holdings (GLXY) | $25.36 | $25.90 (+2.13%) | |
| MARA Holdings (MARA) | $11.91 | $12.27 (+3.02%) | |
| Riot Platforms (RIOT) | $15.22 | $15.55 (+2.17%) | |
| Core Scientific (CORZ) | $15.82 | $16.03 (+1.33%) |
Conclusion
The Bitcoin mining sector is undergoing a major transformation as a result of the rise of AI and increasing costs. Miners are being forced to adapt to the brand new reality, with some converting to AI/HPC and others shifting to stranded energy. The industry is diverging into two clear models, and the business of mining is being rewritten fast. As the sector continues to evolve, it can be interesting to see how miners reply to the challenges and opportunities presented by AI and other aspects.
