Bitcoin Hashrate Drops to 4-Month Low as AI Competes for Power

Bitcoin hashrate falls below 1,000 EH/s for the first time in 4 months as miners shift power to AI for better profits.

The Bitcoin network hashrate has dropped below 1 zetahash per second (ZH/s) for the first time in four months.

This decrease comes despite a recent increase in miner profitability and signals a shift in the demand for computing resources.

Analysts suggest that growing interest in artificial intelligence is drawing power away from Bitcoin mining.

AI Operations Drawing Power Away from Bitcoin Mining

The current hashrate stands at around 993 EH/s, based on a seven-day moving average. It has decreased by nearly 15% since its high of 1,157 EH/s recorded on October 19, 2025, according to Hashrate Index.

This drop suggests many miners are scaling down their Bitcoin operations.

Leon Lyu, the CEO of StandardHash, stated on X that miners are now choosing AI compute services instead of Bitcoin mining.

He explained that this move is due to AI offering higher profit margins than SHA-256 mining, which powers the Bitcoin network.

Bitcoin Hashrate Alert: A Shift in the Mining Landscape 📉

For the first time since Sept 2025, BTC’s 7-day average hashrate has fallen below 1 ZH/s. A -4.34% difficulty adjustment is expected in ~3 days.

What’s driving the exodus? 🧵

1️⃣ The AI Pivot: Major mining firms are… pic.twitter.com/hg8O8xBIkx

— Leon Lyu (@LeonLyuLv) January 19, 2026

Many Bitcoin mining facilities already have large power supplies and cooling systems. These features make it easier for operators to shift to AI and high-performance computing tasks without much infrastructure change.

Mining Profitability Pressure Continues

Despite the hashrate decline, miner profitability has slightly improved. Bitcoin’s hash price has risen from $37.15 to $40 per petahash per second per day in the past month.

This increase shows that miners who stay on the network are earning more per unit of computing power.

Since November 12, 2025, Bitcoin mining difficulty has fallen from 156 trillion to 146.5 trillion.

This change means miners need less computing work to find new blocks, which can reduce energy costs. However, these improvements have not been enough to stop the shift toward AI.

TheMinerMag previously warned that 2025 could be the toughest year for miners due to high debts and falling revenues.

This economic pressure is pushing miners to explore other industries where their resources can generate better returns.

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Questions Over Unreported Mining Activity

There are also concerns that some mining activity may not be recorded accurately. Lyu noted that Bitmain, a major Bitcoin mining equipment maker, might be using undisclosed partnerships to operate off-the-books hashrate.

If true, the actual network hashrate may be higher than what is reported publicly.

This raises questions about transparency in the mining sector. If large companies are operating in private channels, it becomes harder to assess the true state of the network.

The overall decline in visible hashrate, however, confirms that many miners are facing heavy pressure and choosing to reallocate their resources.

As AI continues to grow, it appears to be an attractive alternative for those looking to improve returns from their infrastructure.