Bitcoin Miners Pivot to AI Data Centers Amid Reward Halving

Kevin O’Leary, Chairman of O’Leary Ventures, highlighted the strategic importance of learning from bitcoin mining operations to advance AI infrastructure during his speech at Consensus 2025. He emphasized that bitcoin mining operations, often situated near abundant and sustainable energy sources, are well-suited for AI data centers due to their industrial-scale power connectivity. This overlap has caught the attention of both institutional investors and policymakers in Washington, D.C., who are now focusing on the common ground between these two industries.

O’Leary pointed out that North America must address its power demands to stay competitive with China in next-generation industries like AI. He noted that states like New York, which initially struggled with policy, are now trying to regain their footing in bitcoin mining and AI. More favorable locations for these operations include West Virginia, North Dakota, Mississippi, Texas, and Alberta, Canada, which has an abundance of low-cost, stranded natural gas.

The recent halving of bitcoin mining rewards has forced miners to diversify into AI and cloud computing to maintain profitability. Companies like Core Scientific, Hive Digital, and Hut 8 have pivoted their data centers towards AI, leveraging the massive electricity requirements of AI to support their operations. This marriage of bitcoin mining and AI data centers is seen as a strategic move to diversify revenue streams and capitalize on the growing demand for AI computing power.

O’Leary expressed optimism about the future of AI infrastructure, citing conversations with policymakers such as U.S. Interior Secretary Doug Burgum, Oklahoma Governor Kevin Stitt, and Alberta Premier Danielle Smith. He highlighted the importance of collaboration between the U.S. and Canada, warning against a tariff war that could hinder progress in the AI sector. O’Leary emphasized that the competitiveness of nations in the AI wars hinges on their ability to secure and generate sufficient power, whether from natural gas, nuclear power, or other sources.