Bitcoin miners pivot to AI data centers for higher margins

Bitcoin mining companies are increasingly pivoting their business models toward artificial intelligence (AI) and high-performance computing (HPC) to secure higher profit margins. A report from CoinShares indicates that AI computing can generate approximately $1.5 million in profit per megawatt annually, significantly outperforming the roughly $500,000 generated by traditional Bitcoin mining.

Riot Platforms is undergoing a similar transition, with its Bitcoin mining revenue share expected to drop to around 65% by Q2 2026 as engineering and data center revenues grow. The company is building AI laboratory and data center capacities intended to generate recurring lease income by June 2028.

Other industry players are also shifting focus. IREN reported that its AI cloud revenue reached $70.5 million in the second quarter, surpassing its mining segment. Meanwhile, Core Scientific has moved toward a dual model of mining and AI computing, having previously paid $41.9 million to terminate a hardware delivery agreement after mining operations faced negative gross margins. This trend is driven by the economic reality that high cash costs for Bitcoin production and low hash prices make pure mining less lucrative than AI-driven infrastructure services.