Bitcoin network has its first quarterly hashrate drop since 2020 — Iran conflict spurs Bitcoin mining operators to accelerate pivot to AI infrastructure

The Bitcoin network has experienced its first quarterly hashrate drop since 2020, with a 4% decrease in computational power in the first quarter of 2026. This decline is attributed to global events, including the Iran-U.S. conflict and the resulting increase in oil prices, impacting the cost of electricity for miners. As a result, many mining operators are transitioning from hosting Bitcoin miners to hosting AI applications due to profitability challenges. This shift may lead to a change in the mining landscape as operators pivot to AI infrastructure, utilizing GPUs from companies like Nvidia and AMD.