Leading miner walks away from Bitcoin

During the coronavirus pandemic, some of my acquaintances feared they would get laid off and were exploring different revenue streams.

Those interested in innovative methods were quickly drawn to Bitcoin (BTC) mining.

Related: What is Bitcoin mining? Explained

Bitcoin mining is the process of using specialized computing hardware to solve complex cryptographic functions so that you can verify and add blocks containing BTC transactions to the chain.

In exchange for adding blocks and securing the Bitcoin network, miners receive rewards in the form of BTC.

When rewards were high, some of my acquaintances bought specialized hardware to mine Bitcoin; some even hustled on their smartphones. Back then, it was a profitable venture and drew tech enthusiasts looking for rewards.

But multiple halving events over the years have significantly lowered rewards and Bitcoin mining no longer remains a lucrative enterprise.

Bitcoin halving, as the name suggests, halves the block reward for miners and is executed to control the supply of new BTC coins.

So, rewards have declined despite a rise in Bitcoin price over the years.

Not only my acquaintances, but several popular crypto companies have also abandoned Bitcoin mining operations.

The allure of artificial intelligence (AI) is also there. Since mining companies already own high-end computing systems, they didn’t take long to abandon mining for AI.

As reported earlier, Bitfarms Ltd. (Nasdaq/TSX: BITF) said in November 2025 that it plans to wind down its Bitcoin mining business by 2027 and pivot to AI.

Tether Holdings, the world’s largest stablecoin company, also announced the same month that it is shutting down its Bitcoin mining operations in Uruguay.

Now, another popular company is walking away from Bitcoin mining operations.

Bit Digital (Nasdaq: BTBT) is a crypto company that began mining Bitcoin in 2020.

It even mined Ethereum (ETH) for some time before the blockchain network transitioned from proof-of-work (PoW) to proof-of-stake (PoS) consensus mechanism.

Following this transition, the firm pivoted to Ether treasury and staking and subsequently to AI operations.

Tether co-founder and former child star Brock Pierce joined the company’s board of directors in September 2021. He purchased $1 million worth of BTBT shares in June 2025.

On Jan. 29, the company released its annual shareholder letter in which it said it is planning to completely shut down Bitcoin mining operations.

Though mining was earlier effective, it has become a “less efficient use of capital” in comparison to other opportunities, Bit Digital CEO Sam Tabar said.

The company said it will now entirely focus on Ethereum’s economic infrastructure and AI as intelligence infrastructure.

Bit Digital’s stock was exchanging hands at $2.07 in pre-market hours on Jan. 30, down 1.9%.

Related: Bit Digital spins out AI unit as banks shy away from crypto exposure, CEO says

This story was originally published by TheStreet on Jan 30, 2026, where it first appeared in the MARKETS section. Add TheStreet as a Preferred Source by clicking here.