The dream of Bitcoin mining companies for "Mining in America" has shattered! Mining companies are shifting to the construction of AI data centers, with scarce electricity becoming the key to remolding valuations.

American Bitcoin mining companies are accelerating the transition of scarce power and large-scale data center resources to the infrastructure development of AI computing power, significantly undermining the cryptocurrency industry's foundation that Trump aimed to centralize in the U.S. The total market value of Bitcoin has decreased by about $1 trillion from its peak in October 2025, putting pressure on mining economics; meanwhile, the demand for power capacity and data centers from major AI data center operators is prompting publicly listed mining companies to adjust their business focus. Forecast data indicates that by the end of this year, most revenue from publicly listed mining companies in the U.S. will come from selling or renting AI computing resources; the computing power share of the compliant mining pool Foundry USA has also dropped from over one-third to 26%. After Trump's return to the White House, promoting the construction of AI data centers and supporting energy became a clear policy direction. An executive order signed on July 23, 2025, calls for expediting federal approvals for data centers and related power infrastructure while leveraging suitable federal land and resources to support construction. On June 18, 2026, the U.S. Federal Energy Regulatory Commission further instructed six regional grid operators under its jurisdiction to assess the reasonableness of existing large power customer access rules or propose reforms to accelerate the access of facilities such as data centers, while preventing cost burdens from being passed on to other users. These policies from the Trump administration aim to shorten construction and power supply waiting times, but new power sources, grids, and equipment still require a construction cycle. Bitcoin mining enterprises with established power conditions are therefore more valued by AI developers and cloud computing giants. With Bitcoin's performance remaining lackluster in recent years, related mining companies have started turning to AI computing resources, which is already manifested in long-term contracts. Hut 8 disclosed on July 20 that its Texas Beacon Point facility was initially assessed for development based on the direction of its associated client, American Bitcoin, but ultimately signed two 15-year AI leasing contracts totaling 704 megawatts of IT capacity, with a total base lease contract amount of $19.6 billion. TeraWulf also announced on July 6 that it has signed a 20-year lease with Anthropic for approximately 401 megawatts of IT load, with expected base lease contract revenues of about $19 billion, and capacity expected to begin delivery in the second half of 2027. These cross-term contracts provide companies with longer-term revenue visibility and showcase the ability of large AI data center customers to secure power resources. The core assets driving this transformation are undoubtedly power access, land, substation facilities, and project delivery capabilities. Existing mining sites still need upgrades to their power redundancy, liquid cooling, and networking facilities to handle high-density AI computing; TeraWulf's financial report indicates that some mining facilities are being closed or remodeled to expand high-performance computing business, confirming relevant accelerated depreciation and impairment. Therefore, whether mining companies can achieve revaluation depends on whether long-term lease revenues can cover renovation investments, financing costs, and delivery risks. The Trump administration's support for expedited AI data center construction and local mining is forming commercial competition under conditions of limited power resources, and companies that can secure reliable customers and complete important data center deliveries related to AI computing clusters are better positioned to convert existing energy assets into new cash flows. The AI boom undermines Trump's "Made in America" Bitcoin plan. Under the double impact of the AI boom and the prolonged downturn in the cryptocurrency market, Donald Trump's commitment to centering Bitcoin mining activities in the U.S. is rapidly unraveling. Even after a recent rebound, Bitcoin's total market value has decreased by about $1 trillion from its peak in October 2025, and the economic allure of mining this highest-valued global cryptocurrencyearned by validating transactionshas never seemed so dim. The escalating resource consumption of AI has prompted mining companies to transform their facilities into data centers that meet industry demands. By the end of this year, most revenues for listed mining companies are expected to come from AI. Some cryptocurrency mining hardware manufacturers are also following suit, turning to AI business. Thus, according to data tracked by Luxor Technology, a cryptocurrency mining service provider based in Seattle, the computing power used for Bitcoin mining has decreased by 18% compared to last October. However, this market is not only shrinking but also shifting its focusfrom the U.S. to East Asia and certain parts of Russia, reversing a trend that has persisted for years. "The biggest decline is among companies listed in the U.S. because they are redirecting their power to AI," said Ethan Villa, COO of Luxor. "We expect this trend to continue." For a once-thriving market, this is a severe reversal. During the 2024 campaign, this market was a significant point for Trump to garner support from cryptocurrency advocates. Considering potential competition from China, Trump expressed his desire for every Bitcoin to be "manufactured, mined, and minted" in the U.S. The Trump family has also felt this change. American Bitcoin Corp., a mining company supported by the Trump family, was established last year, just before Bitcoin's historical price drop. The company has reported losses for three consecutive quarters, with its stock price dropping about 90% over the past year. With access to cheap energy and easy availability of equipment from local companies like Bitmain, China once dominated the cryptocurrency mining industry. The large-scale crackdown by the Chinese government in 2021 changed this landscape, prompting mining companies to migrate. The U.S. subsequently became the center of this market, with a number of publicly listed companies like MARA Holdings and Riot Platforms rapidly expanding their operations. These companies rely on institutional mining poolsplatforms that aggregate computing power and enhance miners' chances of earning rewards. Since MARA and its competitors are listed in the U.S., they often use mining pools compliant with U.S. regulations, such as Foundry USA. Meanwhile, Antpool and F2Pool are more popular among miners outside the U.S. According to Hashrate Index, Foundry's share of the total Bitcoin network computing power has fallen from over one-third to 26%. As shown in the chart, market shares divided by mining pools have significantly decreased for domestic Bitcoin mining levels in the U.S. Note: The snapshot of the Bitcoin mining market share by region over the past three days as of August 31; Source: Hashrate Index. Villa noted that mining pool data can only roughly estimate changes in mining activity, but the trend of moving away from the U.S. is quite clear. Long-standing Hardware Issues This change can also be observed in the business decisions of cryptocurrency mining hardware manufacturers. In March, the mining hardware startup Auradine Inc. based in Santa Clara, California, rebranded as Velaura AI and began promoting a new chip design and intellectual property platform. The company stated in August that it raised $110 million in its Series A funding round, bringing its overall valuation to over $1 billion. "Our work in Bitcoin-specific integrated circuits has helped us validate these technologies in high-volume production and demanding real-world deployment environments," said Rajiv Kalani, co-founder and CEO of Velaura AI. He added that in recent years, "it has become increasingly clear that power consumption and energy efficiency are becoming one of the most important constraints facing AI data centers and emerging physical AI super applications." Auradine's repositioning indicates that the recent warming of cryptocurrency mining activity in the U.S. may ultimately just be a temporary phenomenon. Although China has officially banned most types of cryptocurrency activities, it still firmly controls the hardware sector of the industry. Bitmain continues to hold an almost monopolistic position. Even lobbyists supporting cryptocurrencies are beginning to recognize this reality. The Blockchain lobbying organization Digital Chamber stated that building manufacturing facilities in the U.S. is very difficult, especially for energy-intensive facilities. The organization mentioned that mining equipment manufacturers are actively seeking to move production capacity to the U.S., but often face obstacles due to lengthy approval processes, difficulties in obtaining electricity, supply chain vulnerabilities, and tariffs. Nonetheless, at least some efforts continue. A year ago, Block Inc., co-founded by one of Twitters founders, Jack Dorsey, launched its own mining rig, Proto Rig, a sleek gray box device with fan ventilation. However, since then, Block has said little about Proto. In July of this year, Bitdeer Technologies Group, headquartered in Singapore, announced its intention to invest $36 million to build its first U.S. manufacturing plant in Sparks, Nevada. The company expects this factory to produce 10,000 Sealminer mining machines for cryptocurrency mining each month. "We still see Bitcoin mining as a core pillar of our business," said Retainna Lin, VP of Bitdeers AI business, in an interview.