During this week in East 8 Zone Time, multiple events surrounding computing power, transactions, and fund flows are unfolding: on one side, there is the pressure of Hut 8 recording a net loss of approximately $248 million in 2025, with revenue only around $235.1 million, while on the other side, there is an acceleration towards betting on AI and transforming computing power infrastructure. Meanwhile, exchanges are strengthening localized and compliant operations, top venture capital firms have completed $650 million in new fund raises, Ethereum whales are taking profits by exiting, and investigators are predicting insider reports, with funds and narratives frequently switching tracks. The multi-pronged actions of mining companies, exchanges, and venture capital paint a picture of the Bitcoin mining pressure, leading the crypto industry towards a new cycle focused on AI computing power and financial cryptography.
Opinion Analysis
● Mining industry performance under pressure: Public information shows that Hut 8 reported a net loss of approximately $248 million in 2025, while revenue was about $235.1 million, with the revenue scale barely covering losses, creating a stark contrast. Behind this is the continuous reduction of block subsidies in Bitcoin mining after multiple halvings, compounded by severe price fluctuations and the rigid existence of costs such as electricity and equipment, creating a continued erosion of the traditional "mine to earn" logic, with cash flows and balance sheets facing high pressure tests.
● Betting on AI computing power: Against the backdrop of mining pressure, multiple media outlets have disclosed that Hut 8 is transitioning from a pure Bitcoin mining company to a computing/infrastructure service provider represented by AI, attempting to hedge the cyclical risks of a single mining business through computing power leasing and data center services directed at AI training and high-performance computing. For Hut 8, this transformation is expected to bring longer cycles and more predictable service revenues, but it also implies increased capital expenditures and a reshaping of technical and operational capabilities, resulting in both gains and risks in the short term.
● Diverse survival in the industry: Hut 8's choice is not an isolated case but a microcosm of the overall strategy shift of mining companies: moving from a highly dependent "Bitcoin price + total network computing power" single-factor survival model to a multi-path approach of "computing power infrastructure platformization." At the same time, exchanges are capturing new incremental users through localized compliance, and venture capital is doubling down on financial cryptography with a $650 million new fund, while whales and investigation events stir emotions and liquidity, weaving together forces that form a new cyclical narrative far exceeding the "mining—selling coins" category.
Narratives Intertwined
● Miner transformation and computing power repricing: Under the dual influence of halving and price fluctuations, the profit space in Bitcoin mining has been continually compressed, pushing mining companies to transition from "single mining" to "comprehensive computing power providers." Hut 8's massive loss of $248 million yet continuing to bet on AI computing power and infrastructure indicates that management is more focused on the long-term asset value of computing power in AI, cloud computing, and other fields. Computing power is no longer just a tool for mining Bitcoin but is gradually evolving into a fundamental resource across industries, with its pricing logic shifting from "output currency quantity" to "service contracts and computing power lease terms."
● Financial cryptography and migration of funds in mining: Dragonfly Capital completed a $650 million fundraising for Fund IV (according to a single source report) and clearly stated it will "focus on financial cryptography," extending its perspective from upstream infrastructures like mining to complex financial stacks like DeFi and trading infrastructures. Compared to mining companies like Hut 8 transitioning from "mining coins" to "selling computing power and services," venture capital is focused on "buying future financial protocols and infrastructures with money." The two paths together reflect a shift of funds from singular asset exposure to a more diversified and sophisticated risk-return structure.
● Compliance localization and user competition: In an increasingly stringent regulatory environment, mainstream exchanges are enhancing local licenses, compliance reporting, and local operational team building, trying to "root" itself within the rule frameworks of various countries. For example, platforms like Binance are laying out around local language content, channel collaborations, and community operations, enhancing the stickiness of existing users on one hand while building a more trustworthy entry for potential new users on the other. Mining companies provide computing power, venture capital provides capital, and exchanges reach users and liquidity, with all three reshuffling roles in a new round of industrial division of labor.
Deep Game Theory
From a profitability model perspective, traditional miners rely on "stocking coins for mining": acquiring Bitcoin through low-cost electricity and large-scale mining machines, then betting on a long-term price increase to offset short-term cash flow pressures through asset appreciation. This model is highly sensitive to price; once halvings and price declines overlap, the apparent gains and real cash flows can quickly become torn apart. The new generation model is "selling computing power, selling services": mining companies provide hosting, power packaging, cabinet rentals, and even AI training computing power, breaking down a single price risk into multiple service contracts and long-term leases to improve revenue stability and pricing power.
This transformation will potentially impact the security of the Bitcoin network and computing power distribution: on one hand, more mining companies may allocate computing power to AI or other applications, theoretically weakening their input towards Bitcoin mining, which could affect network computing power stability in extreme cases; on the other hand, it may also foster more specialized and focused miners to remain, concentrating computing power in a higher threshold environment, enhancing the network's resilience to short-term price fluctuations. Meanwhile, exchanges' localization has reinforced the connection to fiat currency and regulatory links, and venture capital's layout in financial cryptography injects funds into on-chain transaction and settlement infrastructures. Together, they all participate in the long-term game of "who controls the infrastructure, who controls liquidity."
In terms of funds, upstream mining companies expanding into AI and cloud computing power mean that some capital is shifting from "pure mining capacity expansion" to "general computing power and data center assets"; midstream venture capital is betting on DeFi and financial infrastructures with a $650 million scale fund; downstream whales are conducting swing operations on top assets like Ethereum, profiting from their control over timing. This multi-layered migration of funds reflects both a vigilance against the retreat of singular narratives and an intense desire within the industry for new narratives.
Layout Suggestions
In the future, AI computing power, financial cryptography, and compliance localization are converging to become the new main melody of the crypto industry: Hut 8 and other mining companies are transforming to explore the value of computing power in the AI field, Dragonfly Fund IV with $650 million ammunition is focusing on the financial cryptography track, and mainstream exchanges are reconstructing user relationships within localized and regulatory frameworks. These three clues together outline a new pattern leaning more towards "infrastructure—financial stack—compliance entry," far from the single price speculation narrative.
For participants, a more realistic approach is not to guess prices but to establish an observation framework: firstly, observe whether the implementation of regulation and localization progresses smoothly, as this will directly influence the survival space of exchanges and financial protocols; secondly, examine the transformational executive power of mining companies and related firms, especially whether AI computing power and hosting services can truly translate into stable cash flows; thirdly, monitor the rhythm of capital inflows and outflows, especially whether long-term funds like the $650 million fund will continuously come in to elevate the industry "foundation" or if it is merely a phase of game playing. From this perspective, investment and participation decisions should focus more on track resilience and infrastructure quality rather than short-term market fluctuations.
Join our community, let's discuss and grow stronger together!
Official Telegram community: https://t.me/aicoincn
AiCoin Chinese Twitter: https://x.com/AiCoinzh
OKX benefits group: https://aicoin.com/link/chat?cid=l61eM4owQ
Binance benefits group: https://aicoin.com/link/chat?cid=ynr7d1P6Z
免责声明：本文章仅代表作者个人观点，不代表本平台的立场和观点。本文章仅供信息分享，不构成对任何人的任何投资建议。用户与作者之间的任何争议，与本平台无关。如网页中刊载的文章或图片涉及侵权，请提供相关的权利证明和身份证明发送邮件到support@aicoin.com，本平台相关工作人员将会进行核查。
