Bitcoin mining operators CORZ, KEEL, IREN, CIFR positioned to exit bitcoin mining entirely, per CoinShares analysis.

Bitcoin mining is undergoing a significant consolidation as major listed miners prepare to exit the sector. According to CoinShares' second-quarter report, Core Scientific (CORZ), Keel Infrastructure (KEEL), IREN, and Cipher Digital (CIFR) are winding down operations. The exits are substantial enough that CoinShares projects at least 35 exahashes per second (EH/s) of computing power leaving the listed miner group in the third quarter—roughly 4% of the entire Bitcoin network's hashrate of approximately 920 EH/s.

Core Scientific has taken the most dramatic step, paying $41.9 million in the second quarter to terminate its chip order agreement with Block's Proto division. The canceled order represented roughly 15 EH/s of next-generation 3nm chip deliveries, described by the report as "the most efficient mining hardware ever produced." The company's mining operation has become deeply unprofitable, with a self-mining gross margin of negative 56%. Management stated it now operates remaining rigs solely to offset contractual power obligations while converting its facilities to other uses. Mining has dwindled to just 13.12% of Core Scientific's revenue, and its cash cost per Bitcoin of $105,821 now exceeds its all-in cost of $101,597.

Keel Infrastructure ceased Bitcoin mining entirely in June and will record zero mining revenue in the third quarter—a first among listed miners, according to CoinShares. The company posted a gross margin of negative 285% in the second quarter as it accelerated depreciation on retired equipment. Keel has sold 1,085 BTC at an average price of $69,100 and plans to liquidate the remainder of its 1,861 coins before year-end.

The economic incentive driving this exodus is stark. AI data centers generate approximately $1.5 million in annual profit per megawatt, compared to roughly $0.5 million for Bitcoin mining. This disparity is pushing miners to reallocate power and infrastructure toward AI applications. Economist and Bitcoin advocate Saifedean Ammous has suggested that Bitcoin's electricity consumption may have already peaked as a result.