The Psychological Crisis of Bitcoin Miners: The Final Temptation Before the AI Era

Current Challenges: When Profits Drop Significantly

The year 2025 has seen a substantial decline in the income of Bitcoin miners. BTC prices have plummeted about 30% from their peak, directly impacting the cash flow from block rewards. As of 01/12/2026, Bitcoin is trading at $91.58K with a 24-hour increase of +0.87%, but this is not enough to erase the accumulated losses.

In this context, major mining companies are no longer sitting idly by. Their first move has been rebranding—from “Bitcoin mining companies” to “high-performance computing firms” or “digital infrastructure providers.” This is not just a marketing change but a signal of a deeper transformation.

The Ultimate Temptation: AI Computing vs. Cryptocurrency Mining

Nick Hansen, CEO of Luxor mining pool, made a shocking statement: the biggest challenge for this industry is not hardware or digital currencies but the ultimate temptation of artificial intelligence.

Why is that? Bitcoin mining data centers are equipped with extremely powerful GPUs and ASICs, which are perfect infrastructure for AI computing. AI service providers not only promise higher profits but also offer significantly more stability compared to crypto mining rewards that depend on volatile prices.

This is the ultimate temptation—choosing between the familiar path (despite difficulties) and the promising new opportunity. For a CEO aiming to maximize shareholder profits, the decision is far from simple.

Analysis: Two Conflicting Business Models

The issue lies in the fundamentally different nature of the two activities:

Bitcoin Mining:

• Revenue model: Block rewards based on luck and capacity
• Cyclic nature: Tightly linked to BTC price, highly speculative
• Challenges: Requires risk management of exchange rate fluctuations

AI Computing Services:

• Revenue model: Long-term service contracts
• Stability: Revenue can be forecasted
• Advantage: Not dependent on price volatility

While infrastructure can be shared between the two fields, the business models, sales teams, and even company culture are entirely different. One side needs blockchain experts, the other needs AI and B2B sales engineers.

The Role of Monetary Policy: The Federal Reserve Puzzle

A factor that could change the entire game is the US Federal Reserve’s interest rate policy. If the Fed begins a rate-cutting cycle in 2026:

• Low interest rates → Weakening USD
• Weak USD → Storage assets like Bitcoin become attractive
• Bitcoin price rises → Mining profits improve
• Pressure to diversify into AI eases

Conversely, if the Fed maintains high interest rates, Bitcoin miners will face additional pressure to diversify revenue streams.

Survival Strategies for Bitcoin Miners

Activities aiming to survive this phase should implement three strategies:

1. Flexible Hardware Invest in equipment that can be repurposed. High-performance GPUs can easily switch from mining to AI computing, while dedicated ASICs are more challenging. This flexibility is key to preventing companies from being “stuck” in a single activity.

2. Building a Dual-Team Hire both crypto experts and AI/data specialists. One understands blockchain markets, the other can secure enterprise AI contracts. Without this coordination, a company will only have “potential” but no “ability to execute.”

3. Maintaining Financial Balance Avoid “all-in” on AI or neglect Bitcoin mining entirely. A solid financial balance sheet allows for experimentation, waiting for the right opportunities, and weathering tough months.

Stories of Companies That Have Transitioned

Some publicly listed Bitcoin mining companies have already started acting. They continue mining Bitcoin but actively build separate AI computing divisions, viewing this as a primary growth target. This indicates the market has recognized the ultimate temptation—and smart CEOs are preparing accordingly.

Impact on Bitcoin Security

A natural question: if hash rate leaves the network to go into AI, what happens?

Theoretically, the Bitcoin network could become less decentralized. However, the Bitcoin protocol will automatically adjust mining difficulty if needed. Moreover, a core group of miners (with the lowest electricity costs) will continue operating, ensuring network security and stability. Therefore, the actual risk is not as significant as it seems.

Expectations for 2026: The Year of Balance

2026 will be decisive. Bitcoin miners who can:

• Understand the ultimate temptation but stay calm
• Carefully invest in AI computing while maintaining Bitcoin mining
• Closely monitor macroeconomic signals like Fed interest rate decisions

…will be the successful companies.

Those who fall into the trap—focusing solely on one area or reacting too late—will face consequences. The future of the industry belongs to those who can walk this tightrope.

Frequently Asked Questions

Why do Bitcoin miners care about AI?
They own the necessary computing infrastructure, and AI services offer more predictable profits compared to irregular mining rewards.

Can GPUs mine Bitcoin and run AI at the same time?
Yes. Some high-performance GPUs can switch flexibly. Dedicated ASICs are more challenging. The most versatile activities use hardware optimized for both tasks.

What happens if hash rate drops?
Bitcoin network will adjust difficulty. A core group of miners with the lowest electricity costs will continue to operate, ensuring security.

How does interest rate affect this?
Low interest rates weaken USD, making Bitcoin more attractive and improving mining profits.

Is this good or bad for the crypto industry?
It’s a sign of maturity. Mining becomes more professional, efficient, and sustainable in the long term.