Bitcoin Miners Pivot to AI and HPC Power Infrastructure
Bitcoin miner stocks have surged over 150% year-to-date, outpacing Bitcoin’s 14% gain, as firms reposition from cryptocurrency production to AI and HPC power providers. Leading companies like Cipher Mining and IREN saw shares jump 300%–500% after securing AI workload hosting deals, including Cipher’s $3 billion, 10-year collaboration with Fluidstack. Singapore-based Bitdeer plans to convert its 570 MW Clarington site into an AI data center, targeting up to $2 billion annual revenue by 2026.
US miners control 6.3 GW of operational and 2.5 GW of under-construction capacity, offering the fastest route to grid power amid a projected 45 GW data center shortfall by 2028. With mining rewards halved in 2024, firms are turning to AI and HPC to boost per-megawatt revenue and EBITDA margins. Pre-approved grid connections now cut interconnection times to under two years, unlocking new value beyond traditional Bitcoin mining.
Neutral
While the miners’ pivot to AI and HPC infrastructure has driven substantial gains in miner stocks and improved margin profiles, its direct impact on Bitcoin’s price remains limited. In the short term, these developments reduce miner reliance on block rewards and could ease selling pressure on BTC, offering mild support. However, by revaluing miners as technology firms rather than crypto producers, the connection between mining operations and Bitcoin price weakens, tempering potential upside. Over the long term, enhanced miner economics and grid-integrated capacities may reinforce network security and underpin Bitcoin fundamentals, but the evolving business model may sustain a degree of decoupling from spot price movements.