Bitcoin Mining Faces A Shakeout As CORZ, KEEL, IREN, CIFR Get Ready To Exit, Says CoinShares
CoinShares reported that Core Scientific (CORZ) spent $41.9M to cancel a chip order, Keel (KEEL) stopped mining, and IREN (IREN) and Cipher (CIFR) are winding down, reducing Bitcoin's network computing power by 4%. AI data centers' higher profits may incentivize miners to shift resources. Bitcoin miner stocks fell 3-4% amid the news.
How this was made
The 30-second read
Why it matters
The combined 35 EH/s hashpower loss represents a 4% reduction in total network capacity, likely pressuring Bitcoin price and mining margins.
Market read
The news directly affects listed mining stocks and indirectly benefits AI infrastructure players, while also influencing broader crypto market sentiment.
What to watch
Potential regulatory changes or cheaper renewable power could revive mining economics despite current exits.
Background
CoinShares' Q2 Bitcoin mining report reveals a coordinated exit of several public miners, highlighting a sector shift toward AI data‑center profitability.
Ticker impact
Core Scientific cancelled a $41.9M chip order, signaling a shift away from mining and pressuring its stock.
downward pressure on CORZ price in the short term
The $42M spend loss and negative gross margin indicate deteriorating fundamentals.
Keel Infrastructure stopped mining entirely and will record zero mining revenue, driving its share price lower.
significant decline in KEEL stock price
Zero mining revenue and a -285% gross margin highlight a distressed business.
IREN is winding down its mining business, with exits expected to remove ~35 EH/s from the network.
moderate downside pressure on IREN shares
The exit is part of a broader sector contraction, but the company still retains other operations.
Cipher Digital is winding down mining and expects mining to be immaterial by 2030, affecting its valuation.
downward pressure on CIFR stock
Long‑term shift away from mining diminishes future revenue streams.
Market effects
The exits shave ~4% off Bitcoin network hashpower, pressuring all listed miners and potentially widening the AI‑data‑center vs mining profitability gap.
U.S. mining stocks face heightened volatility, while AI‑related infrastructure firms may see relative strength.
Reduced hashrate could modestly affect Bitcoin price dynamics, influencing crypto markets worldwide.
Counterpoint
If AI data‑center profits continue to outpace mining, some miners may pivot and capture new growth, offsetting short‑term pain.
Key entities
- Research FirmCoinShares
Provider of the Bitcoin mining sector report.
- EconomistSaifedean Ammous
Commentator on Bitcoin electricity consumption trends.
