Bitcoin Network Upgrading Challenges as AI Data Centers Emerge

Bitcoin miners are finding it increasingly difficult to upgrade their operations as the cost of converting mining facilities into AI data centers is 10-15x higher than traditional crypto mining. On average, running an AI data center costs between $3 million and $5 million per megawatt, while a typical Bitcoin mining facility costs between $300,000 to $350,000 per megawatt.

This significant price difference is forcing many Bitcoin miners to rethink their strategies. Despite the allure of high-performance computing, only 20% of existing mining facilities have the necessary infrastructure to make the transition to AI data processing.