Public Bitcoin Miners Sell 32,000 BTC and Shift Capital to AI

Public Bitcoin miners sold about 32,000 BTC in the first quarter of 2026 and are directing more capital into artificial intelligence and high‑performance computing projects as fee income for the network drops to levels not seen since 2019. On‑chain figures show daily miner revenue has fallen to roughly $25 million on a seven‑day moving average, a level last recorded during past market drawdowns.

Data tracking trailing 12‑month fee income indicates miners now earn about $114 million a year from transaction fees, the weakest reading since 2019. The April 2024 halving reduced the block subsidy to 3.125 BTC, and Bitcoin currently trades about 50% below its October 2025 all‑time high, limiting overall miner revenue in dollar terms.

Since the halving, transaction fees have frequently represented less than 1% of total block rewards. The drop in fee income and lower token issuance have prompted listed mining companies to sell reserves to cover operating costs and fund new investments. Sales in Q1 2026 exceeded the total BTC liquidations by public miners during all of 2025. One major operator revised its treasury policy this year to allow sales from its full balance‑sheet reserve.

Several firms in the sector have announced more than $70 billion in contracts for AI and high‑performance compute capacity, and some large miners already generate revenue from AI infrastructure services. Companies report reallocating capital toward servers and data centers that support AI workloads.

Network security indicators show a mixed picture. Bitcoin’s mean hash rate fell from a late‑2025 peak above 1.1 zettahashes per second to about 850–900 exahashes per second, a pullback that nevertheless leaves compute power protecting the network above levels seen at the April 2024 halving. Recent difficulty adjustments have lowered the cost of producing blocks, improving margins for miners that remain active.

Charles Edwards, founder of Capriole Investments, described the fee chart as “one of the more concerning long‑term Bitcoin metrics” and added, “Bitcoin’s transaction throughput fee revenue is in free fall, block rewards keep halving and AI compute demand is through the roof. It’s no wonder every single public Bitcoin miner is pivoting away from Bitcoin and into AI.”

Market commentators note that fee and revenue troughs have previously clustered near past market bottoms. Some observers say current revenue lows may align with a cycle low, while others point out that a large-scale shift of mining capital into AI and compute services could alter how the next cycle unfolds.