Bitcoin traded just above $60,000 while its estimated all‑in production cost per coin remained near $84,300, leaving many miners underwater. The network's difficulty fell 10.09% from 138.96 trillion to 124.93 trillion in mid‑June, the second‑largest adjustment of the year and the eleventh‑largest in history. That adjustment extended block times and triggered a difficulty reset that lowered the breakeven hashprice. CoinShares reported a weighted average cash cost of $79,995 per Bitcoin in the fourth quarter of 2025, with hashprice slipping from the $36‑$38 range to about $29 before climbing above $30 after the difficulty cut. Miner costs varied widely; low‑cost operators using modern hardware and cheap power kept margins, while higher‑cost rigs paid 6‑7 cents per kilowatt and operated at a loss as revenue fell with Bitcoin’s price. Some miners sold Bitcoin, powered down rigs, delayed expansion, or renegotiated power contracts to stay afloat. The largest public miners have pursued a third option: converting part of their business to AI and high‑performance computing. CoinShares noted more than $70 billion in cumulative AI and HPC contracts, and analysts estimate listed miners could derive up to 70 % of revenue from AI by the end of 2026, up from roughly 30 % today. Deals include a $10.2 billion agreement for Core Scientific with CoreWeave, a $12.8 billion HPC revenue booking for TeraWulf, a $7 billion fifteen‑year AI infrastructure lease for Hut 8, and Bitfarms’ rebranding away from Bitcoin. These moves split the sector into miners active in AI, those awaiting revenue, and pure‑play miners still dependent on Bitcoin. Public miners have reduced Bitcoin holdings by more than 15,000 BTC since the peak, with Core Scientific offloading about 1,900 coins in January, Bitdeer reaching zero balance in February, and Riot selling 1,818 coins in December. The first quarter of 2026 alone saw greater Bitcoin liquidation than the entire year of 2025. If Bitcoin approaches $100,000, hashprice may rise toward $37, slowing treasury sales and reviving hardware refresh cycles. If the price stays near production cost, miners will continue to sell coins and pursue AI deals while difficulty adjustments restore balance. If Bitcoin falls further, higher‑cost hash rate will shut down, widening the gap between hybrid and pure‑play firms and giving low‑cost operators more market share. The network has remained operational as hashprice recovered and block times returned to near 10 minutes, indicating that hash rate exits reflected thin margins rather than abandonment. The long‑term impact on network security remains uncertain as AI‑focused revenue streams develop.