Bitcoin News Today: Bitcoin Miners Transform Data Centers into AI Powerhouses for Tech Giants

Bitcoin miners are rapidly transforming their infrastructure to meet the surging demand for artificial intelligence (AI) computing power, with companies like IREN and Cipher Mining leading the charge. Leveraging their existing energy-efficient data centers and access to low-cost power, these firms are retrofitting facilities with Nvidia Corp (NASDAQ:NVDA)-powered GPUs to host AI workloads for major tech firms. Alphabet Inc's (NASDAQ:GOOGL) Google and Microsoft Corp (NASDAQ:MSFT) are among the beneficiaries, securing long-term contracts with miners to access high-density computing resources. This shift underscores a broader industry pivot from cryptocurrency mining to AI infrastructure, driven by the exponential growth in demand for large language models and generative AI applicationstitle1^[1].

IREN Ltd (NASDAQ:IREN), formerly Iris Energy, has emerged as a key player in this transition. The company announced additional multi-year cloud services contracts with leading AI companies for Nvidia Blackwell GPU deployments, bringing its total GPU count to 23,000 units in operation or on order. These contracts are projected to generate over $500 million in annualized run-rate revenue (ARR) by the end of Q1 2026, with 11,000 GPUs-representing $225 million in ARR-expected to be operational by year-endtitle3^[3]. IREN's strategic pivot includes expanding its power capacity to nearly 3 GW by 2026, supported by 2,910 MW of secured power across North America. The firm's British Columbia campuses and Horizon 1 & 2 data centers in Texas are designed to host over 100,000 GPUs, positioning IREN as a scalable solution for AI clientstitle4^[4].

Cipher Mining Inc (NASDAQ:CIFR) has similarly capitalized on the AI infrastructure boom. The company secured a 10-year, 170 MW hosting deal with Fluidstack, backed by Google, which also acquired a 5% equity stake. Cipher's facilities are being upgraded with Nvidia H100 and Blackwell GPUs to handle compute-intensive AI workloads. This aligns with broader industry trends, as companies like CoreWeave Inc (NASDAQ:CRWV) and Nebius Group NV (NASDAQ:NBIS) compete to dominate AI infrastructure. CoreWeave, which acquired bankrupt miner Core Scientific, is leasing megawatts from Cipher and others, while Nebius struck a $17 billion deal with Microsoft Azure to supply GPU-dense rackstitle1^[1].

The financial performance of these miners reflects the market's confidence in their AI transition. IREN reported record $501 million in fiscal 2025 revenue, a 168% increase from the prior year, alongside a net income swing from a $28.9 million loss to $86.9 million profit. The company's AI cloud revenue surged 429% to $16.4 million, with projections of $200–250 million annually once full GPU deployment is complete. IREN's partnership with Nvidia, secured through a $168 million GPU purchase, guarantees access to cutting-edge Blackwell architecture, reinforcing its competitive edge in a supply-constrained markettitle7^[7].

Investors are increasingly viewing Bitcoin miners as dual-use infrastructure providers, combining stable crypto revenues with high-growth AI hosting contracts. This diversification mitigates exposure to Bitcoin's price volatility while aligning with the tech sector's long-term AI ambitions. However, challenges remain, including regulatory scrutiny over energy consumption and competition from hyperscalers like Microsoft and Amazon. For miners like IREN and Cipher, success will depend on maintaining cost advantages, securing long-term client commitments, and executing rapid infrastructure expansions.