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Bitcoin News Today: The Major Transition: Bitcoin Mining Companies Evolve into Leading AI Infrastructure Providers

Bitcoin News Today: The Major Transition: Bitcoin Mining Companies Evolve into Leading AI Infrastructure Providers

Bitget-RWA2025/11/12 18:28
By:Bitget-RWA

- Bitcoin miners shift to AI infrastructure as margins shrink due to rising energy costs and post-halving challenges, with companies like Core Scientific and Cipher Mining repurposing data centers for AI workloads. - Major contracts, including a $5.5B, 15-year AWS deal and a $9.7B Microsoft agreement, highlight AI’s 25x higher revenue per megawatt compared to Bitcoin mining, driven by stable demand from tech giants. - The pivot reshapes market dynamics, with AI-focused miners outperforming Bitcoin peers as

Industry experts and analysts say that Bitcoin mining companies are rapidly shifting their focus to artificial intelligence infrastructure as profit margins shrink due to rising energy prices and the effects of the latest halving. What was once a specialized approach has now become a widespread industry transformation, with firms such as

, Iris Energy, and adapting their data centers to meet the soaring demand for AI computing power, according to .

This strategic change comes after Bitcoin’s halving in April 2024, which cut block rewards and caused average hash prices—daily earnings per terahash—to fall below $0.05 by mid-2025, representing a 60% decrease from pre-halving figures, as reported by

.
Bitcoin News Today: The Major Transition: Bitcoin Mining Companies Evolve into Leading AI Infrastructure Providers image 0
Since electricity can make up as much as 90% of operational expenses, miners are increasingly turning to AI tasks, which can yield up to 25 times more revenue per megawatt compared to conventional mining, as highlights. This has led to a surge in long-term agreements, such as Cipher Mining’s $5.5 billion, 15-year lease with Amazon Web Services (AWS) to deliver 300 MW of AI infrastructure starting in 2026, as outlined by .

“Miners have evolved beyond just Bitcoin—they now serve as digital infrastructure providers,” one analyst observed, pointing out that seven of the ten largest miners now earn income from AI or high-performance computing (HPC) ventures, according to

. For example, Cipher Mining secured a $1.4 billion lease guarantee from Google for its Colchis facility in Texas, while Iris Energy entered a $9.7 billion agreement with Microsoft for 200 MW of AI capacity, as reports. These deals, which offer stable and high-margin revenue, stand in stark contrast to the unpredictable nature of Bitcoin mining profits.

This transformation is altering the competitive landscape. Companies like TeraWulf and Core Scientific are prioritizing AI growth over expanding Bitcoin hashrate, with TeraWulf’s $3.7 billion Fluidstack partnership alone expected to generate $1.85 million per MW each year, according to

. Meanwhile, Marathon Digital, after acquiring 64% of Exaion for $168 million, is piloting immersion-cooled HPC facilities, as notes. Still, analysts caution that this transition comes with significant risks, including steep capital requirements ($8–11 million per MW) and technical hurdles in managing AI workloads alongside Bitcoin’s need for constant uptime, as points out.

This industry pivot is also changing how companies are valued. Investors are now more interested in contracted AI megawatts and revenue per MW than in hash rates, with AI-centric miners like Core Scientific and TeraWulf outperforming those focused solely on Bitcoin, as

reports. However, Marathon Digital CEO Fred Thalheimer warned that narrowing margins and intensifying competition could threaten long-term gains. “Mining economics are deteriorating more rapidly than anticipated,” he remarked, emphasizing the importance of strategic diversification, as notes.

Industry watchers suggest that this shift may slow the growth of Bitcoin’s hashrate, as more power is allocated to AI GPU clusters. This development, together with increasing demand from tech giants like Microsoft and Google, has already pushed AI’s energy consumption in the U.S. beyond that of Bitcoin mining, according to

. While Bitcoin’s price swings and occasional fee surges provide some relief, the sector’s identity is evolving—from being seen as digital gold to becoming a broader digital infrastructure industry, as observes.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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