Why Bitcoin Miners Are Becoming the New Powerhouses of AI Infrastructure

The energy-AI nexus is reshaping global infrastructure, and Bitcoin miners are emerging as unexpected champions. Faced with declining profitability post-2024’s halving and surging demand for AI compute, miners are repurposing their power-dense facilities into AI infrastructure powerhouses. This strategic reallocation of assets—leveraging low-cost energy, GPU expertise, and pre-existing thermal management systems—positions them as ideal partners for hyperscalers like OpenAI and Meta.

Strategic Asset Reallocation: Power, Scale, and GPUs

Bitcoin miners have long optimized for two critical factors: access to low-cost electricity and large-scale infrastructure. These same attributes are now indispensable for AI workloads, which require massive power and high-performance GPUs. For example, CoreWeave’s $9 billion acquisition of Core Scientific in 2025 secured 1.3 gigawatts of power capacity and over 250,000 GPUs, enabling the company to fulfill a $16 billion order backlog from OpenAI [1]. Core Scientific’s pivot from Bitcoin mining to AI hosting has already boosted its colocation revenue by 90% year-over-year, with margins exceeding 75% [2].

The transition is not merely operational but structural. Miners like Bitfarms and Marathon Digital have replaced ASICs with cutting-edge GPUs (e.g., H100, MI300X) and upgraded networking to support AI’s bursty workloads [3]. This retrofitting is cost-effective compared to building traditional data centers from scratch, which face permitting delays and supply chain bottlenecks [4].

Cost and Scalability: Repurposed vs. Traditional Data Centers

Repurposed mining infrastructure outperforms traditional data centers in three key metrics:
1. Energy Efficiency: Miners leverage immersion cooling and existing power grids, reducing energy costs to as low as $0.028/kWh [5]. Traditional centers, by contrast, often pay $0.08–$0.12/kWh and require costly retrofits for AI’s high-density needs [6].
2. Total Cost of Ownership (TCO): AI-ready repurposed facilities generate $12.50 in revenue per watt annually, versus $4.20 for traditional centers [7]. CoreWeave’s Q2 2025 results highlight this: $1.21 billion in revenue and 62% adjusted EBITDA margins, driven by AI hosting [1].
3. Scalability: Miners’ pre-allocated power and modular designs allow rapid expansion. Core Scientific’s 1 GW of potential expansion capacity, for instance, dwards the 30 kW per rack power densities typical of traditional centers [8].

Industry Projections and the Energy-AI Boom

The IEA projects AI-driven data center energy demand will quadruple by 2030, consuming as much electricity as the U.S. manufacturing sector [9]. Bitcoin miners, with their energy-optimized infrastructure, are uniquely positioned to meet this demand. Goldman Sachs estimates AI workloads will account for 27% of global data center power by 2027 [10].

Investment Case: Long-Term Profitability in the Energy-AI Nexus

The financial metrics are compelling. CoreWeave’s valuation surged from $1 billion to $78.4 billion in 2024–2025, reflecting investor confidence in its AI infrastructure dominance [11]. Core Scientific’s stock has gained 33–35% upside potential as it transitions to high-margin AI hosting [12]. Meanwhile, industry reports highlight a 26.6% CAGR for AI infrastructure through 2034 [13].

Risks remain, including regulatory scrutiny and execution challenges. CoreWeave’s all-stock acquisition of Core Scientific faced shareholder opposition due to its 66% premium [14]. However, the structural demand for AI compute and miners’ cost advantages suggest these risks are manageable.

Conclusion

Bitcoin miners are not just surviving the post-halving era—they’re thriving by pivoting to AI. Their access to low-cost power, GPU expertise, and scalable infrastructure make them ideal partners for hyperscalers. As AI energy demand skyrockets, these repurposed facilities will outperform traditional data centers in cost, efficiency, and ROI. For investors, the energy-AI nexus represents a once-in-a-generation opportunity to capitalize on the infrastructure revolution.

Source:
[1] CoreWeave Reports Strong Second Quarter 2025 Results [https://investors.coreweave.com/news/news-details/2025/CoreWeave-Reports-Strong-Second-Quarter-2025-Results/]
[2] Core Scientific Announces Fiscal Second Quarter 2025 Results [https://investors.corescientific.com/news-events/press-releases/detail/121/core-scientific-announces-fiscal-second-quarter-2025-results]
[3] Bitcoin Miners Are Transforming into AI Data Centers in 2025 [https://www.datacenters.com/news/bitcoin-miners-pivot-to-ai-data-centers-a-strategic-shift-in-2025]
[4] Can US infrastructure keep up with the AI economy? [https://www.deloitte.com/us/en/insights/industry/power-and-utilities/data-center-infrastructure-artificial-intelligence.html]
[5] IREN's Strategic Transition from Bitcoin Mining to AI-Ready Data Centers [https://www.ainvest.com/news/iren-strategic-transition-bitcoin-mining-ai-ready-data-centers-capital-reallocation-play-ai-infrastructure-boom-2508/]
[6] AI is set to drive surging electricity demand from data centres while offering the potential to transform how the energy sector works [https://www.iea.org/news/ai-is-set-to-drive-surging-electricity-demand-from-data-centres-while-offering-the-potential-to-transform-how-the-energy-sector-works]
[7] 25+ AI Data Center Statistics & Trends (2025 Updated) [https://thenetworkinstallers.com/blog/ai-data-center-statistics/]
[8] CoreWeave: Decoding the AI Infrastructure Economy [https://www.investing.com/analysis/coreweave-decoding-the-ai-infrastructure-economy-ahead-of-earnings-200664740]
[9] Projecting the Electricity Demand Growth of Generative AI Large Language Models in the US [https://www.energypolicy.columbia.edu/projecting-the-electricity-demand-growth-of-generative-ai-large-language-models-in-the-us/]
[10] Artificial Intelligence and Data Centers Predicted to Drive Record-High Energy Demand [https://www.morganlewis.com/blogs/datacenterbytes/2025/02/artificial-intelligence-and-data-centers-predicted-to-drive-record-high-energy-demand]
[11] AI Markets: Energy, Bitcoin, and Compute [https://outlierventures.io/article/ai-markets-energy-bitcoin-and-compute/]
[12] Core Scientific Bets Big On AI Hosting And Bitcoin Mining [https://finimize.com/content/corz-asset-snapshot]
[13] The Strategic and Financial Implications of CoreWeave's $9 Billion Takeover of Core Scientific [https://www.ainvest.com/news/strategic-financial-implications-coreweave-9-billion-takeover-core-scientific-2508]
[14] CoreWeave's $9 Billion Acquisition of Core Scientific Gives an AI Road Map for Struggling Bitcoin Miners [https://fortune.com/crypto/2025/07/09/coreweaves-9-billion-acquisition-of-core-scientific-gives-an-ai-roadmap-for-struggling-bitcoin-miners/]