Bitcoin mining is undergoing a significant shakeout as record production costs and weaker revenues force listed miners to cut capacity or exit mining altogether, according to CoinShares’ latest quarterly mining review.
The report found that the weighted average ex-tax cash cost to produce one Bitcoin among listed miners reached approximately $75,500 in Q2 2026. Bitcoin ended the quarter at $58,400, meaning many operators were producing below cash breakeven. The monthly average hash price also dropped to a record low of $27.7 per PH/s per day in June.
Companies are responding by reducing Bitcoin production and pivoting toward AI and high-performance computing services. Core Scientific recorded a $41.9 million loss after canceling remaining orders for next-generation mining hardware, removing roughly 15 EH/s of planned capacity. Keel halted Bitcoin mining operations on June 29 and is expected to report zero mining revenue in Q3. IREN and Cipher moved closer to exiting mining, with more than 35 EH/s of capacity scheduled to leave the listed mining group.
CoinShares noted that AI-related revenue is overtaking mining income at some firms. IREN’s AI cloud revenue surpassed mining revenue for the first time, while TeraWulf’s high-performance computing leases now account for most of its revenue. The network hash rate declined sharply in the first half of 2026 as miners removed unprofitable equipment, though CoinShares said the pullback reflected economic pressure rather than a permanent break in the mining cycle.
The report highlighted that existing energy infrastructure is becoming a key advantage, as restrictions on new data center construction increase demand for sites with existing power access. CoinShares expects some miners to remain focused on Bitcoin while others continue shifting toward AI and computing services, creating a more hybrid mining and computing industry.
