Charles Edward, founder of the digital asset hedge fund Capriole Investments, has warned that BTC miners are rapidly shifting to artificial intelligence (AI), raising concerns about the future of mining activity and its impact on the Bitcoin price. He described the trend as both unexpected and worrying based on statements from publicly listed Bitcoin mining companies about future revenue targets.
Bitcoin Price At Risk As Miners Pivot to AI
Edwards reported in an X post that every major public Bitcoin mining firm has announced plans to pivot toward AI services. According to the data he shared, these companies expect their Bitcoin revenue to fall sharply, from an average of about 90% to roughly 30% over the next two to three years.
Notably, Edwards pointed to stock market performance as one of the main signals behind the recent shift. He explained that companies that set aggressive AI revenue targets above 80% reportedly saw their share prices rise by an average of more than 500%. Meanwhile, firms that targeted less than 60% of their revenue to AI saw significantly weaker performance, with many posting negative returns over two years.
He also highlighted changes in mining hardware investment strategies among Bitcoin miners. Edwards stated that several companies are not planning to buy new Bitcoin mining equipment and instead intend to run their existing machines until the end of their lifespan while redirecting future spending into AI infrastructure.
His warning further included concerns about the long-term security of the Bitcoin network. He emphasized that mining companies provide the computing power that secures the network. As a result, Edwards argued that reduced investment in mining hardware, such as Application-Specific Integrated Circuits (ASICs), could weaken this security if fewer resources are committed to maintaining or expanding capacity.
Separately, the recent pivot to AI could affect the Bitcoin price, which has already come under pressure as public BTC miners increasingly sell their holdings. Moreover, with fewer miners actively accumulating the cryptocurrency, the reduced buy-side demand could significantly weigh on price performance over time.
Edwards also referenced the rise of quantum computing as an additional risk factor. He stated that advances in quantum computing could pose a serious challenge to Bitcoin’s cryptographic systems unless changes are made to the network’s code to address future technological threats.
Overall, he emphasized that the current shift is significantly different from past downturns in the Bitcoin mining sector. He noted that previous mining capitulation events usually involve about 20% to 30% of miners exiting the market. However, he noted that mining companies collectively valued at more than $100 billion are signaling a major move away from cryptocurrencies. According to him, this widespread shift into AI suggests that industry leaders do not currently expect strong long-term growth in the BTC price.
Public Bitcoin Miners Dump Thousands Of BTC In Q1
A recent report from TheEnergyMag, a research firm, revealed that public miners are increasingly selling off their BTC at a pace not seen since the final stages of the previous crypto bear market. The company noted that this selling activity has been fueled by a prolonged decline in mining revenue and economics, prompting operators to liquidate their holdings as many shift toward AI technology.
Additionally, Hashprice previously dropped to near all-time lows around $33 per PH/s, making it increasingly difficult for miners to turn a profit. The 2024 halving event, which cut block rewards, has also further shrunk miners’ earnings, while network difficulty is dramatically higher than it was in 2021.
According to the report, public miner companies such as MARA, Riot, Congo, CleanSpark, and Bitdeer have already collectively sold more than 32,000 BTC in the first quarter of 2026. The research firm noted that this figure surpasses total net Bitcoin sales across all four quarters of 2025, setting a new industry record.
from Bitcoinist.com https://ift.tt/kMPcmNb
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