StandardHash CEO Leon Lyu said the decline reflects miners reallocating electricity toward AI compute services in search of better margins.

Lyu wrote in a Monday post:

“The Bottom Line: While manufacturers are plugging in their own surplus stock, the net outflow of hashrate confirms the immense pressure on miner profitability. AI isn’t just a trend; it’s actively competing for the grid.”

He also speculated that some manufacturers, including Bitmain, may be deploying surplus machines through opaque or indirect arrangements.

Lyu said that could mean publicly reported hashrate data may understate actual capacity.