It’s harder than ever to mine bitcoin. And less profitable, too.
But miners’ stocks are still flying, even with cryptocurrency prices in retreat.
That’s because these firms have something in common with the hottest investment theme on the planet: the massive, electricity-hungry data centers expected to power the artificial-intelligence boom.
Some companies are figuring out how to remake themselves as vital suppliers to Alphabet, Amazon, Meta, Microsoft and other “hyperscalers” bent on AI dominance.
Bitcoin-mining — using vast computer power to solve equations to unlock the digital currency — has been a lucrative and cutting-edge pursuit in its own right.
Lately, however, increased competition and other challenges have eroded profit margins.
But just as the bitcoin-mining business began to cool, the AI build-out turned white hot.
The AI arms race has created an insatiable demand for some assets the miners already have: data centers, cooling systems, land and hard-to-obtain contracts for electrical power — all of which can be repurposed to train and power AI models.
It’s not a seamless process.
Miners often have to build new, specialized facilities, because running AI requires more-advanced cooling and network systems, as well as replacing bitcoin-mining computers with AI-focused graphics processing units.
But signing deals with miners allows AI giants to expand faster and cheaper than starting new facilities from scratch.
These companies still mine some bitcoin, but the transition gives miners a new source of deep-pocketed customers willing to commit to longer-term leases for their data centers.
“The opportunity for miners to convert to AI is one of the greatest opportunities I could possibly imagine,” said Adam Sullivan, chief executive of Core Scientific, which has pivoted to AI data centers.
The shift has boosted miners’ stocks.
The CoinShares Bitcoin Mining ETF has surged about 90% this year, a rally that has accelerated even as bitcoin erased its gains for 2025.
The ETF holds shares of miners including Cipher Mining and IREN, both of which have surged following long-term deals with companies such as Amazon and Microsoft.
Shares of Core Scientific quadrupled in 2024 after the company signed its first AI contract that February.
The stock has gained 10% this year.
The company now expects to exit bitcoin mining entirely by 2028.
It’s harder than ever to mine bitcoin and profitability has slipped as prices retreat.
Yet miners’ stocks keep rising, driven by the AI boom and the demand for the massive, electricity-hungry data centers they already own.
These facilities, cooling systems, and power contracts are increasingly being repurposed to train and run AI models for Alphabet, Amazon, Meta, Microsoft, and other hyperscalers.
The AI arms race has created a strong demand for next-generation data-center assets, enabling miners to pivot from pure crypto mining to AI-enabled workloads.
Some operators have also signed long-term deals with major tech players, expanding faster and cheaper than building new facilities from scratch.
The CoinShares Bitcoin Mining ETF has surged about 90% this year, highlighting the market’s shift toward AI-oriented infrastructure.
Core Scientific, for example, quadrupled in 2024 after its first AI contract, signaling a broader transition within the sector.
The path forward includes continuing bitcoin mining at select levels while increasingly focusing on AI data centers and related services, with the company projecting an exit from bitcoin mining entirely by 2028.
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