Bitcoin miners pivot to AI, causing hashrate drop

The Bitcoin hashrate experienced its first first-quarter decline in six years, dropping approximately 4% year-to-date. This shift is attributed to deteriorating mining economics, prompting firms to reallocate capital towards more profitable AI infrastructure. Publicly listed U.S. miners, who previously dominated over 40% of the global hash rate, are increasingly exploring AI and high-performance computing. This pivot, funded by debt and asset sales, could lead to a more geographically decentralized Bitcoin network, even as it makes hashrate growth more sensitive to the cryptocurrency's price.