The convergence of Bitcoin mining and artificial intelligence (AI) compute is accelerating, as major mining firms leverage their hard-won expertise in energy procurement and modular infrastructure to address AI's growing power crisis. This strategic pivot, however, is drawing capital and resources away from Bitcoin mining, sparking debates about the long-term security of the Bitcoin network.
The AI Power Constraint and Mining's Solution
A critical roadblock for AI advancement is a shortage of sustainable, accessible power. Global electricity consumption by data centers is projected to more than double by 2030, according to the International Energy Agency. Power supply shortages are already slowing new data-center rollouts in key markets like Europe, the Middle East, Africa, and the United States, where grid bottlenecks are lengthening connection times.
Bitcoin mining companies, having spent a decade mastering the art of pairing computation with low-cost renewable energy and deploying modular infrastructure at scale, are now applying these lessons to AI. Cango (NYSE: CANG), one of the largest listed Bitcoin miners, is undergoing a "power-to-inference" transformation. The company is redeploying its global, energy-anchored infrastructure into a decentralized AI compute grid, creating a network that channels computing power along electricity pathways. Its approach uses standardized, modular containers for rapid deployment, mirroring mining efficiencies.
The Miner Exodus and Market Pressure
The AI boom has offered a lucrative new revenue stream for miners facing declining rewards. Companies like Iren (Nasdaq: IREN), Applied Digital Corp (Nasdaq: APLD), and Hut 8 Corp (Nasdaq: HUT) repurposed rigs for AI and saw massive share gains in 2025. Some are going further, abandoning Bitcoin mining altogether.
Bitfarms (Nasdaq: BITF) sold its Paraguay Bitcoin mining plant to reinvest in North American HPC/AI infrastructure. Riot Platforms (Nasdaq: RIOT) made an AI deal with AMD, fully funded by selling 1,080 BTC from its balance sheet. These actions, combined with miners selling BTC to cover operational costs amid rising mining expenses, have added selling pressure on the cryptocurrency.
Security Implications for the Bitcoin Network
The pivot reveals a deeper concern for Bitcoin's long-term security. Each halving event cuts the block reward miners receive in half. After the 2024 halving, rewards dropped to 3.125 BTC and will fall to 1.5625 BTC after 2028. Unless Bitcoin's price increases substantially, mining becomes less lucrative compared to AI returns.
The security of the Bitcoin network relies on the "security budget"—the sum of block rewards and transaction fees that incentivize miners. As the block subsidy declines, transaction fees are meant to cover the shortfall. Justin Bons, founder of VC firm Cyber Capital, has warned, "BTC’s security is lower now than it was 5 years ago! The security budget will keep falling until the network is attacked." The Hash Ribbon indicator signaled miner capitulation in late November 2025, a condition that historically precedes market bottoms but also highlights sector strain.
Cango CEO Paul Yu summarized the convergence: "As AI, HPC, and Bitcoin mining continue converging, the winners will be those with the most energy-efficient and deployment-ready infrastructure. The future of compute will be modular, distributed, and energy-anchored."
