AI Boom Prices Out Bitcoin Miners in US Energy Market Shake-Up

The U.S. Bitcoin mining industry appears to be losing ground in the competition for power as artificial intelligence (AI) companies move aggressively to secure long-term energy infrastructure, according to a new report from GoMining Institutional.

The result of this shift in power demand, driven by AI firms securing energy capacity once used by miners, is a deceleration in domestic hashrate growth and a strategic rethinking among some of the sector’s largest players, according to analysts at GoMining Institutional.

Backed by capital reserves and less sensitive to electricity pricing, AI and high-performance computing (HPC) firms are now increasingly outbidding Bitcoin miners for access to power, data center space, and grid capacity. According to GoMining Institutional’s latest “H1 Bitcoin Mining Market Review and Key Trends” report, the shift is forcing miners to pivot away from expansion and toward new business models.

‘Tech Revolutions Colliding’

Fakhul Miah, managing director at GoMining Institutional, says that the story of H1 2025 is “the story of two tech revolutions colliding.”

“While Bitcoin saw unprecedented validation from Wall Street and Washington, miners on the ground faced a new threat from the AI industry’s insatiable demand for energy,” Miah added.

AI firms are locking in large-scale energy deals once sought by miners. Crypto investment firm Galaxy Digital, for example, converted much of its West Texas Helios campus from Bitcoin mining to AI computing. Its partner, CoreWeave, expanded its lease from 133 MW to nearly 400 MW.

Riot Platforms paused a 600-MW mining buildout in Texas and is now evaluating AI and HPC options at the site. Iris Energy capped its mining fleet and shifted to its AI cloud business, which now brings in over $25 million annually.

Bitfarms, a publicly listed mining firm, has also shifted its strategy. While the company remains “bullish on mining economics,” its priority now is to “create long-term shareholder value through U.S. energy and HPC expansion,” said CEO Ben Gagnon.

Untapped Markets

As GoMining Institutional puts it, the wave of reallocation signals a structural shift in how digital infrastructure is monetized. Miners are no longer just competing with each other but with AI firms that can extract more value from the same megawatt. In response, some firms are rebranding themselves as data center providers or adopting mixed-revenue models.

The broader impact is beginning to show in hashrate metrics too. While the U.S. still leads the world in Bitcoin mining, accounting for 36% of global hashrate according to Hashrate Index’s Global Hashrate Heatmap, the pace of growth has slowed. Bitcoin’s last halving in 2024 — which reduced block rewards from 6.25 BTC to 3.125 BTC — has further tightened margins and heightened sensitivity to electricity pricing.

The Heatmap, which consolidates data from ASIC trading, mining pools, and firmware signals, indicates that U.S.-based miners are now tapping the brakes on expansion plans. With AI demand taking priority on the grid, miners are finding fewer favorable energy deals.

The report concludes that “looking ahead, the U.S. may struggle to maintain its dominant share of global hashrate” as capital shifts toward untapped markets.

Founded in 2017, GoMining is a digital mining platform that enables users to participate in Bitcoin mining without the complexities of managing physical hardware. In May 2024, GoMining secured $3 million in a funding round led by VC firm Bitscale Capital.