Bitcoin Mining Costs Surge as Companies Shift Focus to AI

According to PANews, a recent CoinShares report reveals that the average cash cost for mining a single Bitcoin by publicly listed mining companies rose to $82,162 in the fourth quarter of 2024, marking a 47% increase from the previous quarter. The Bitcoin network's hash rate also saw significant growth, reaching an all-time high of 900 EH/s during the same period, with projections indicating it will surpass 1 ZH/s by July 2025. In response to the intensifying competition, several mining companies are strategically transitioning towards data center infrastructure and high-performance computing hosting services. CoreScientific has allocated 43% of its capacity to artificial intelligence (AI) operations, while Cipher Mining plans to dedicate 35% of its future capacity to the AI sector. This shift highlights the industry's adaptation to evolving technological demands and the pursuit of diversified revenue streams.