In a significant shift that could alter the landscape of cryptocurrency mining, Charles Edwards, founder of Capriole Investments, has raised an alarm regarding the increasing pivot of Bitcoin miners towards artificial intelligence (AI). This trend not only questions the sustainability of Bitcoin mining activities but also poses potential risks to the stability of the Bitcoin price itself.
In a recent post on X, Edwards pointed out that every notable publicly listed Bitcoin mining firm has announced plans to delve into AI services. He shared his findings, which suggest that these companies anticipate a drastic reduction in their Bitcoin revenue—from an average of approximately 90% to a mere 30% within the next two to three years.
Mining’s AI Transition: A Threat to BTC Prices?
The stock market seems to be a significant influence behind this transition. Companies that set ambitious AI revenue targets above 80% have seen their share prices soar by an average of over 500%. In stark contrast, those aiming for less than 60% AI revenue witnessed a drop in performance, leading to many posting negative returns over two years.
Edwards also observed a marked change in investment strategies related to mining hardware. Several Bitcoin mining firms have chosen to forego investing in new mining equipment, opting instead to continue utilizing existing machines until their capabilities wane. Future investments are now being redirected towards AI infrastructures.
This shift raises grave concerns about the long-term security of the Bitcoin network. Edwards highlighted the crucial role mining firms play by providing the computational power necessary to secure the blockchain. A reduction in investments towards mining hardware, such as Application-Specific Integrated Circuits (ASICs), could jeopardize network security, as fewer resources may be committed to sustaining or expanding computational capacity.
Additionally, the recent focus on AI may influence Bitcoin’s pricing dynamics, which already faces pressures as public BTC miners increasingly liquidate their holdings. The decline in buying activity from miners could lead to a decrease in demand for Bitcoin, exacerbating potential price declines in the future.
Edwards drew attention to another emerging threat: the advancements in quantum computing, which could undermine Bitcoin’s cryptographic systems if the network’s code isn’t updated to counter future technological challenges.
He underscored that this present situation differs from historical downturns in the Bitcoin mining sector. While previous mining capitulations saw around 20% to 30% of miners exiting, today’s trend signals a broader withdrawal, with companies valued at over $100 billion indicating a significant shift away from cryptocurrencies. Edwards believes this suggests that industry leaders do not foresee robust long-term growth in Bitcoin’s price.
Public Miners Selling Off BTC at Record Pace
An alarming trend has surfaced as public miners reportedly sold off their Bitcoin holdings at a rate reminiscent of the final stages of the previous crypto bear market. According to research by TheEnergyMag, the ongoing decline in mining revenue has compelled many operators to liquidate their BTC as they pivot towards AI technology.
Additionally, Hashprice has plummeted to near-historic lows, making profitability increasingly challenging for miners. With the upcoming 2024 halving event further tightening miners’ earnings and the network difficulty significantly surpassing levels seen in 2021, the outlook remains bleak.
In total, public mining companies such as MARA, Riot, and CleanSpark have reportedly sold over 32,000 BTC in the first quarter of 2026, a figure that eclipses total net Bitcoin sales across all four quarters of 2025, setting a concerning new industry record.
