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Bitcoin's hashrate has fallen to its lowest level in four months, dropping below 1 zetahash/second for the first time, despite recent signs of improving Bitcoin mining profitability.
According to Leon Lyu, CEO of StandardHash, the biggest reason is that many Bitcoin miners are shifting their electricity and machinery to AI, as AI is now more profitable.
2025 is considered the most challenging period ever for Bitcoin miners, with declining revenue, increasing debt, and shrinking profit margins. Meanwhile, AI and high-performance computing are more profitable, making it easier for mining companies with readily available large power sources and cooling systems to switch to AI instead of continuing to mine Bitcoin.