The Bitcoin network hashrate has fallen below one zettahash per second for the first time since September 2025. This decline is attributed to mining companies increasingly redirecting electricity to artificial intelligence data centers, which offer steadier revenue and higher profit margins.
Mining Power Drops Below 1 ZH/s
The seven-day average hashrate has dropped to approximately 993 EH/s, representing a significant retreat from the highs seen last year. According to Leon Lyu, CEO of StandardHash, a difficulty adjustment of negative 4.34% is anticipated within the next three days.
Lyu stated on X that miners are shifting their electricity resources towards AI computing to pursue better profit margins. Large AI data centers are securing long-term power contracts and are willing to pay premium rates for consistent, round-the-clock supply. This situation is compelling some mining operations to reduce their capacity or relocate their facilities.
Several publicly traded mining companies have entered into agreements to lease facility space to chipmakers and AI firms. One prominent miner has already finalized a multi-year lease with a major chip company.
PJM, the grid operator responsible for the mid-Atlantic region, has put forward proposed rules that would require large new power consumers to secure their own electricity supply or agree to curtailment during periods of peak demand.
Electricity Competition Reshapes Industry
Electricity costs represent the most significant expense for Bitcoin mining operations. As AI data centers compete for the same megawatts of power, miners are presented with a direct choice: they can either pay higher electricity rates, accept reduced profit margins, or repurpose their existing facilities for alternative computing tasks.
U.S. President Donald Trump and various state officials have advocated for proposals aimed at making tech firms pay more for power. These proposals include implementing emergency auctions to finance the development of new power generation capacity.
The network's difficulty has eased slightly following the decline in hashpower, which has helped to keep block production roughly on schedule.
However, this mechanical adjustment does not alter the fundamental control over the underlying power contracts. Many operators are now retrofitting their sites to accommodate GPUs and other AI hardware, rather than simply leaving equipment idle when electricity prices surge. If the hashrate continues to remain depressed over an extended period, industry observers will be closely watching to see if mining concentration increases in regions where power costs remain low.