US Bitcoin Mining Shift to AI Data Centers Undermines Trump Pledge

Donald Trump’s campaign pledge to centralize Bitcoin mining in the United States is faltering as public mining companies increasingly convert their energy-intensive facilities into AI data centers to capture higher returns [1]. This shift has resulted in an 18% decline in total Bitcoin network computing power originating from the U.S. compared to October 2025, as miners prioritize AI infrastructure over digital asset production [2].

The pivot to AI infrastructure

The financial incentive to mine Bitcoin has diminished significantly, with the asset's total market capitalization sitting roughly $1 trillion below its October 2025 peak [1]. Faced with sluggish mining economics, U.S.-listed miners are reallocating scarce power capacity toward the artificial intelligence sector [2]. For instance, Hut 8 signed 15-year AI leases for its Texas campus with a total base-term contract value of $19.6 billion, while TeraWulf secured a 20-year deal with Anthropic expected to generate $19 billion in revenue [2].

This commercial competition for limited energy resources is reversing the trend that followed China’s 2021 mining crackdown, which had previously established the U.S. as the global leader in hashrate [1]. As U.S. firms pivot, the center of gravity for Bitcoin mining is shifting back toward Chinese pools like AntPool and F2Pool, which have increased their share of the network [1]. Luxor Technology COO Ethan Vera expects that by the end of the year, most revenue for U.S.-listed mining companies will derive from AI computing resources rather than Bitcoin [1].

Corporate impact and policy friction

The transition has hit dedicated mining firms hard. American Bitcoin Corp., a miner backed by the Trump family, has reported losses for three consecutive quarters, with its share price declining approximately 90% over the past year [1]. Other firms are undergoing structural transformations; mining startup Auradine rebranded as Velaura AI in March and raised $110 million to apply its chip technology to AI infrastructure [1].

While the Trump administration has issued executive orders to accelerate federal approvals for data centers and energy infrastructure, the construction cycles for new power grids remain lengthy [2]. Consequently, existing mining sites with pre-secured power connections have become highly valuable assets for cloud computing hyperscalers, further incentivizing miners to abandon Bitcoin production in favor of long-term AI lease agreements [2].

What to watch

• Revenue composition: Monitor upcoming quarterly financial reports from U.S.-listed miners to see if AI-related lease revenue exceeds Bitcoin mining income as projected [1].
• Regulatory grid reform: Track the progress of the Federal Energy Regulatory Commission’s June 2026 mandate requiring regional grid operators to reform large-load interconnection rules, which could impact the speed of future data center deployments [2].
• Hashrate distribution: Observe whether the share of computing power held by U.S.-compliant pools like Foundry USA continues to decline below the current 26% level [1].

The conflict between the administration's goal of domestic Bitcoin dominance and the immediate profitability of AI infrastructure suggests that market forces are currently overriding political objectives. Whether mining companies can successfully revalue their businesses through AI retrofits remains the central uncertainty for the sector's long-term stability.