Bitcoin network hashrate fell below one zettahash per second for the first time since Sept. 2025 as mining companies increasingly redirect electricity to artificial intelligence data centers that offer steadier revenue and higher profit margins.
What Happened: Mining Power Drops Below 1 ZH/s
The seven-day average hashrate dropped to approximately 993 EH/s, marking a clear retreat from last year's highs. A difficulty adjustment of negative 4.34% is expected within three days, according to StandardHash CEO Leon Lyu.
Lyu said on X Monday that miners are shifting electricity toward AI computing to chase better margins.
Large AI data centers are securing long-term power contracts and paying premium rates for round-the-clock supply, forcing some mining operations to cut capacity or relocate.
Several publicly traded miners have signed deals to lease facility space to chipmakers and AI firms. One major miner closed a multi-year lease with a large chip company.
PJM, the grid operator serving the mid-Atlantic region, has proposed rules requiring large new power users to secure their own supply or accept curtailment during peak demand.
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Why It Matters: Electricity Competition Reshapes Industry
Electricity represents the single largest cost for Bitcoin mining operations.
When AI data centers bid for the same megawatts, miners face a direct choice: pay higher rates, accept thinner margins, or repurpose their facilities for alternative computing.
U.S. President Donald Trump and state officials have pushed proposals that would require tech firms to pay more for power, including emergency auctions to fund new generation capacity.
The network's difficulty has eased slightly following the hashpower decline, keeping block production roughly on schedule.
But that mechanical adjustment does not change who controls the underlying power contracts.
Many operators are retrofitting sites to host GPUs and other AI hardware rather than simply idling equipment when electricity prices spike. If hashrate remains depressed over time, industry observers will monitor whether mining concentration increases in regions where power costs stay low.
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