Cryptorhamzy 💎

#NEWS
Miners Write Off $1.5 Billion in Equipment to Pivot to AI

Major US Bitcoin mining companies have begun abandoning a portion of their mining hardware en masse, repurposing their infrastructure for artificial intelligence computing. According to estimates by TheEnergyMag, the value of equipment written off or rendered obsolete could have reached $1.5 billion in the first half of 2026 alone. 💰

The reason for this shift lies in changing industry economics. Bitcoin mining profitability has declined, while demand for AI infrastructure continues to rise. However, the new business model has not yet fully offset the drop in revenue from crypto mining.

During the period in question, publicly traded US mining companies reduced their aggregate hashrate by approximately 75 EH/s. Based on an average equipment cost of around $20 per TH/s, the value of this computing capacity is estimated at roughly $1.5 billion. This figure excludes buildings, power supply systems, cooling infrastructure, and other related assets.

An analysis of financial reports from 12 major public miners also revealed that they wrote off or revalued assets totaling approximately $1.1 billion during the first six months of the year. Two companies—IREN and Core Scientific—accounted for about 89% of this amount.

Notably, a significant portion of the equipment had been purchased quite recently. Between 2024 and 2025, miners invested at least $5 billion in new cryptocurrency mining capacity. These investments helped the Bitcoin network's hashrate reach record highs, exceeding 1,400 EH/s in the autumn of 2025.

However, the companies did not have time to fully recoup the cost of the purchased equipment. Towards the end of 2025, major players began rapidly shifting their data centers and computing capacity toward artificial intelligence tasks.

Cipher serves as a telling example. The company initially launched a mining cluster but soon pivoted it to AI computing. Consequently, it had to write off approximately $96 million in equipment, even though the hardware had generated about $58 million in revenue during its few months of operation.

As a result, some mining companies have faced a distinct financial gap: revenue from crypto mining is shrinking, while the AI segment is not yet generating enough income to fully offset those losses. For instance, TeraWulf generated $53 million from AI-related activities but simultaneously spent $131 million on interest payments for its debt obligations.

Financing presents an additional source of pressure. Banks are becoming more cautious about lending to AI projects, making it harder for miners attempting to fund a transition to the new business model to secure borrowed capital. Consequently, companies are forced to simultaneously write off portions of past investments, service accumulated debt, and invest in infrastructure for the new business line. ⚙️

NEW: 🇮🇹 Italy to ask EU for deficit leeway worth 0.6% of GDP in 2027 — budget document shows

MACRON: WILL RELEASE UP TO 100 MILLION BARRELS

$BTC 87,000$