President Donald Trump’s promise that the United States would become the center of bitcoin mining is losing traction. A rapid rise in demand for artificial intelligence compute combined with a prolonged downturn in crypto markets is undercutting the U.S. mining sector, shifting activity back toward China and Russia, Bloomberg reports.
Market and network indicators
Bitcoin’s market value is about $1 trillion lower than its October 2025 peak, and economic conditions for mining have rarely been as unfavorable. Data from Seattle-based Luxor Technology show that the bitcoin network’s computing capacity (hashrate) is 18 percent lower than last October. Part of the reason is that many mining companies are converting facilities into AI data centers.
Publicly listed miners expect a larger share of their revenue to come from the AI sector by the end of the year. Ethan Vera, chief operating officer at Luxor, says the largest declines are visible among U.S.-listed firms that are reallocating energy capacity and resources toward AI workloads.
Market share shifts and concrete losses
U.S. mining pools have lost market share. Foundry USA’s share of the network’s total computing power has fallen from roughly one-third to 26 percent. The process has affected companies with political ties as well: American Bitcoin Corp., linked to the Trump family and launched last year, recorded losses for three consecutive quarters and its shares have fallen about 90 percent over the past year.
Hardware makers and corporate pivots
Hardware makers are also moving toward AI. California-based mining hardware startup Auradine renamed itself Velaura AI in March and began developing AI chips. In August it closed a $110 million Series A round that pushed its valuation above $1 billion. Rajiv Khemani, co‑founder and CEO, said the company’s experience with Bitcoin ASICs helped demonstrate these technologies at scale in real-world environments.
Chinese manufacturers remain dominant: Bitmain effectively holds a near-monopoly in the mining hardware market. The Digital Chamber, an industry lobbying group, says building U.S. manufacturing capacity is hampered by slow permitting, energy supply challenges, vulnerable supply chains, and tariffs.
There are exceptions — for example, Singapore-based Bitdeer is building a factory in Sparks, Nevada with a $36 million investment, and Jack Dorsey’s Block unveiled its own miner last year — but these have not materially altered the overall picture. As a result, the recent boom in U.S. bitcoin mining may prove temporary.
Why this matters
A geographic shift in mining affects network security, the degree of decentralization, and industry jobs. The fast-growing demand for AI compute offers short-term business opportunities for some miners and hardware suppliers, but it also weakens the investments that might have strengthened the domestic bitcoin ecosystem in the longer term.
An AI assistant contributed to preparing this article; the final content was edited and verified by our journalist.
This article does not constitute investment advice or a recommendation.
