Crypto Miners Shift Focus to AI, Leaving Bitcoin Behind

Shares of cryptocurrency mining companies are outpacing Bitcoin, demonstrating a significant shift in focus towards artificial intelligence (AI) and high-performance computing (HPC). This transition comes as miners pivot from their traditional role in Bitcoin production to becoming tech infrastructure firms.

The recent surge in performance reflects broader industry changes. A fund tracking listed mining firms has seen its value increase by over 150% year-to-date, highlighting a departure from past cycles when miners predominantly benefited from rising Bitcoin prices. As John Todaro, an analyst at Needham & Co., noted, “Investors are almost exclusively valuing Bitcoin miners for their HPC/AI opportunities at this point.”

Despite Bitcoin experiencing a 14% increase in value during 2025, nearing its all-time high of almost $126,000, miners are emerging as the primary beneficiaries of this year’s crypto resurgence. Companies such as Cipher Mining Inc. and IREN Ltd. have seen their stock prices soar by approximately 300% and 500%, respectively. This remarkable growth is attributed to their strategic pivot from Bitcoin mining to AI infrastructure development.

Miners Embrace AI and HPC Opportunities

In a notable development earlier this year, Cipher Mining entered a $3 billion colocation agreement with Fluidstack, a company partially backed by Google. This deal guarantees $1.4 billion in lease obligations in exchange for a 5.4% equity stake, marking a significant step towards merging crypto mining with AI technologies.

Similarly, IREN has successfully closed a $1 billion offering of convertible notes, positioning itself for future growth. Other miners, such as TeraWulf Inc., announced plans to issue $3.2 billion in senior secured notes to expand their Lake Mariner data center in Barker, New York.

The Singapore-based Bitdeer Technologies Group also reported a nearly 30% increase in shares after announcing plans to convert major mining sites into AI data centers. Their facility in Clarington, Ohio, which boasts a capacity of 570 megawatts, could generate annual revenues exceeding $2 billion by the end of 2026, should the transition be successful.

Impact of Bitcoin Halving and Market Dynamics

The pivot towards AI follows the most recent Bitcoin halving in 2024, which reduced miner rewards from 6.25 to 3.125 Bitcoin. This reduction, compounded by rising network difficulty and declining transaction volumes, has pressured profit margins for miners. Even recent highs in Bitcoin prices have not alleviated the economic strains faced by miners.

This strategic shift means that many companies will slow or pause their expansion of Bitcoin’s hashrate, which measures the total mining capacity of the industry. Wolfie Zhao, an analyst at TheMinerMag, remarked that firms such as Riot Platforms Inc., IREN, and Bitfarms have indicated they will not increase their hashrate in the near future.

“The focus is shifting from ‘how much hashrate can we add’ to ‘how efficiently can we utilize our energy footprint,’” he stated. With Bitcoin’s hashprice at historic lows, the transition towards AI and HPC was almost expected.

According to Todaro, “The revenue per megawatt and EBITDA margins are far higher for HPC and AI colocation than for mining.” As a result, many capital markets are currently rewarding AI-focused data centers with significantly higher valuations compared to traditional Bitcoin miners.

As the lines between cryptocurrency mining and AI technology continue to blur, the industry is witnessing a profound transformation that could redefine the future of both sectors. Miners are not just adapting; they are positioning themselves at the forefront of a technological evolution that promises to reshape their business models for years to come.