AI's Hidden Engine: How Crypto Miners Are Powering the Future of Computing

The cryptocurrency mining sector experienced a sharp rally as Nebius Group secured a landmark US$17.4 billion contract with Microsoft to supply GPU technology for artificial intelligence (AI) infrastructure. The agreement, which spans until 2031, involves Nebius providing dedicated GPU capacity to Microsoft and includes an option to expand the deal to US$19.4 billion. The partnership will be supported by a new data center in Vineland, New Jersey, expected to begin leasing infrastructure in 2025 and continue scaling through 2026.

Nebius shares surged nearly 50% intraday, reaching a 52-week high of US$98.68 before closing at US$95.72, reflecting strong investor sentiment toward the long-term potential of AI-driven computing. This performance marked one of the largest single-day gains in the company's history and was accompanied by a trading volume spike to nearly 88 million shares, significantly above its three-month average.

The surge in Nebius’s stock triggered a broader rise across crypto mining equities. Bitfarms and Cipher Mining saw share prices climb by 22% and 20%, respectively, while other miners such as IREN, Hut 8, Riot Platforms, and TeraWulf posted double-digit gains. MARA Holdings, however, lagged with a modest 4% increase, attributed to its recent strategic shift toward Bitcoin holdings rather than large-scale computing infrastructure.

The strong performance of mining stocks occurred despite a slight decline in Bitcoin’s price, which fell approximately 1% in the 24 hours prior to the announcement. This divergence highlights how investor focus is increasingly shifting from traditional cryptocurrency price movements to the broader utility of mining infrastructure in supporting AI development. The energy-intensive nature of mining operations, combined with access to large-scale GPU fleets, has positioned the sector as a key enabler of next-generation AI systems.

Analysts suggest that the Microsoft-Nebius deal signals growing institutional recognition of the role of crypto mining firms in powering AI infrastructure. As global demand for high-performance computing continues to rise, these companies are expected to benefit from a shift in capital and strategic partnerships beyond traditional crypto markets.