During the opening six months of 2026, publicly traded Bitcoin mining firms powered down approximately 75 exahashes per second of active network capacity, reallocating that electricity to artificial intelligence infrastructure instead. Based on a baseline valuation of USD 20 per terahash per second, Miner Weekly calculated that the idled hardware equated to roughly USD 1.5 billion in mining equipment.
This metric calculates equivalent hardware investment rather than verified cash losses. In a separate finding, TheEnergyMag tracked roughly USD 1.1 billion in markdowns and asset impairments across a dozen firms over the identical timeframe.
Bitcoin mining cuts carry a USD 1.5 billion hardware estimate
According to Miner Weekly, public operators scaled back their Bitcoin mining operations while simultaneously growing direct high-performance computing and AI revenues by 52% quarter-over-quarter. A significant portion of this capacity reduction stemmed from choices to channel electricity into AI workloads.
The USD 1.5 billion valuation applies solely to the mining rigs, leaving out expenses related to real estate, electrical infrastructure, cooling systems, and setup labor. The figure also omits any financial recovery from equipment sales or relocation efforts.
The analysis defined the metric as an “equivalent hardware investment,” drawing a clear line between the estimated acquisition cost of the sidelined hardware and the official accounting write-downs noted in corporate reports.
These rollbacks arrived on the heels of a heavy investment phase. An analysis by Miner Weekly in March 2025 highlighted nearly USD 5 billion spent on hardware and infrastructure over the prior reporting cycle. Among companies breaking out separate figures, spending on mining rigs alone surpassed USD 3 billion throughout 2024.
Driven by this expansion, operators deployed additional capacity and more power-efficient hardware. Consequently, total network computing power broke into the zetahash tier during 2025, the publication noted.
IREN and Core Scientific account for most markdowns
Nearly 89% of the USD 1.1 billion in accounting write-downs tracked by TheEnergyMag originated from just two companies: IREN and Core Scientific. The assessment factored in asset impairments alongside downward adjustments to the book value of assets held for sale.
Between January and June 2026, IREN logged roughly USD 695 million in comparable charges. The firm had previously hit 50 exahashes per second of active mining capacity in June 2025, and a major share of its subsequent write-downs stemmed from mining hardware sidelined by AI conversions.
Conversely, Core Scientific pointed to tougher mining economics as the primary driver behind its mining asset impairments. Because the review spanned multiple asset types, the entire USD 1.1 billion total cannot be strictly attributed to hardware losses from AI pivots.
An earlier precedent can be seen at Cipher’s Black Pearl facility, which commenced mining operations in mid-2025. After executing a deal to repurpose the location for general computing services, Cipher wrote down the value of its mining rigs by USD 96.1 million before the close of that year.
The Black Pearl machines brought in USD 57.9 million in 2025 revenue. That specific write-down occurred outside the first-half 2026 dataset, and the data does not determine the facility’s overall lifetime profitability.
AI revenue grows alongside financing costs
While accounting markdowns do not demand immediate cash outlays when booked, operators must still service ongoing capital expenditures and interest payments while building out new infrastructure.
Data from TheEnergyMag shows TeraWulf pulling in roughly USD 53 million via computing leases in the first half of 2026. Over that exact window, the firm disbursed USD 131 million in cash interest company-wide.
These metrics track different segments of TeraWulf’s balance sheet, comparing a single revenue stream against enterprise-wide interest liabilities. The company managed these obligations during the period using cash reserves and supplementary revenue sources.
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