Bitcoin miners pivot to AI data centers to leverage power infrastructure

Bitcoin mining companies are increasingly pivoting toward artificial intelligence and high-performance computing (HPC) data center operations. This shift is driven by rising mining costs, the 2024 Bitcoin halving, and the high value of existing electrical grid connections.

AI tenants can generate approximately $1.5 million per megawatt annually, roughly three times the revenue yielded by Bitcoin mining, which generates about $500,000 per megawatt. Because securing new electrical grid connections can take years, miners are leveraging their established power purchase agreements and infrastructure to serve AI hyperscalers.

Several major players have announced significant transitions or contracts:

• Core Scientific signed a $10.2 billion, 12-year contract with CoreWeave. • IREN secured a deal with Microsoft worth approximately $9.7 billion over five years. • TeraWulf reported that HPC leases accounted for 71% of its second-quarter revenue. • Riot Platforms is pursuing a hybrid strategy with a 20-year lease at its Rockdale facility expected to produce $9.1 billion in base rent. • Hut 8 has secured multiple 15-year leases valued between $7 billion and $9.8 billion each.