Cipher Digital and Hyperscale Data are liquidating Bitcoin. Both firms sold chunks of their treasuries this week, joining a wave of miners pivoting hard into artificial intelligence infrastructure. Hyperscale offloaded 150.5 BTC for $9.6 million in seven days alone. Cipher posted a $267.5 million net loss in Q2.
The math no longer works for traditional mining. Operators are losing roughly $19,000 per coin produced, a brutal gap between production costs and market price. That's the core driver. With Bitcoin holdings drying up, public miners have now shed over 15,000 coins since their treasuries peaked, funneling capital into data centers built to serve AI companies instead.
Hyperscale Data held 959 Bitcoin after the August 2 selloff, down from a stronger position months earlier. The company is racing to redeploy cash. In July, Empery Digital moved faster, converting 1,400 BTC at an average of $62,200 and raising $87.1 million to pay down debt and invest in a Midwest data center play. Bitdeer emptied its vault completely back in February.
Mining revenue at Cipher Digital collapsed 29% quarter-over-quarter. The firm pulled in $25 million in topline revenue against adjusted EBITDA of negative $30 million. That net loss figure of $267.5 million tells the story: the company is burning cash faster than it can generate it from chips and electricity. The pivot away from pure mining isn't optional anymore. It's survival.
This material is informational only and should not be construed as investment advice.
