In the first quarter of 2026, a notable shift occurred among publicly traded Bitcoin miners. After years of racing to add hashrate, many of them reversed course. Bitcoin’s average network hashrate dropped from roughly 985 EH/s in Q4 2025 to 873 EH/s in Q1 2026, according to public blockchain data.
At first glance, the aggregate change among major public miners seemed modest. The combined realized hashrate of 10 key players tracked by TheEnergyMag slipped only slightly, from about 297 EH/s to 291 EH/s. However, beneath that surface was a significant redistribution of industrial-scale hashing power.
Miners Repurpose Fleets for AI and HPC
Companies like Core Scientific, IREN, Cipher Digital, TeraWulf, and Keel Infrastructure sharply reduced their realized hashrate as they dismantled or repurposed mining fleets for AI and high-performance computing infrastructure. IREN’s realized hashrate fell from 42.96 EH/s to 35.83 EH/s. Cipher dropped from 16.55 EH/s to 11.14 EH/s after fully decommissioning mining at its Black Pearl facility in February for HPC retrofitting. Keel Infrastructure, formerly Bitfarms, declined from 16.52 EH/s to 11.51 EH/s as it wound down legacy mining operations.
Meanwhile, other miners expanded aggressively. Riot Platforms increased realized hashrate from 34.21 EH/s to 42.29 EH/s. Bitdeer climbed from 43.20 EH/s to 50.26 EH/s, driven by energization of its SEALMINERs. MARA rose from 51.92 EH/s to 55.52 EH/s, even as it explored AI and HPC initiatives.
Fleet Conversions and Impairment Charges
Corporate filings revealed large-scale dismantling efforts. Core Scientific expects only one or two mining sites to remain operational by year-end, prioritizing colocation infrastructure for CoreWeave. The company recorded a $266.5 million impairment charge in Q1 2026, tied to mining equipment and infrastructure. Cipher Digital disclosed $30.8 million worth of mining rigs held for sale. TeraWulf owned about 54,100 miners as of March 31, but only around 35,500 were operational; the rest were under maintenance or awaiting disposal.
This shift is permanent. Operators are repurposing substations, cooling systems, and data center layouts for GPU workloads. Once converted, it’s unlikely these sites will quickly return to Bitcoin mining.
American Bitcoin Expands Amidst Decline
American Bitcoin, one of the few expanding miners, argued this transition creates an opportunity for dedicated miners. The company increased its fleet capacity from 25 EH/s to 28.1 EH/s in April after reenergizing its Drumheller site. Growth was financed through a structure using pledged bitcoin rather than cash to acquire new ASIC miners from Bitmain. As of March 31, ABTC had pledged 3,090 bitcoin for 18 EH/s computing power, representing nearly 64% of its proprietary fleet. ABTC mined 817 bitcoin in Q1, up 505% from a year earlier. At current production, it could theoretically mine back its pledged collateral in about six quarters.
If network hashrate continues declining as miners unplug for AI, ABTC’s payback period could accelerate further.
A New Financial Logic for Mining
This migration has altered the financial logic of industrial mining. Previously, miners unplugged rigs due to falling Bitcoin prices or rising energy costs. In 2026, they shut down fleets because AI infrastructure offers more stable cash flows and higher returns. The system remains balanced for now, but the dynamics will be worth watching in coming quarters.
