Bitcoin mining has become harder and less profitable, yet the stocks of companies built around it keep rising, even as crypto prices slide. The reason sits in plain sight.
These companies own large data centers that burn huge amounts of power, and those sites are now in demand for computer work tied to artificial intelligence.
Competition has crushed margins across mining operations, while the cost of electricity and equipment keeps climbing. At the same time, big tech groups need ready-to-use sites with land, cooling, and long-term power contracts.
That overlap has pushed several miners to rent out their facilities to Alphabet, Amazon, Meta, Microsoft, and other hyperscalers chasing more computing capacity.
Data centers draw tech giants as miners chase new revenue
Bitcoin mining once stood on its own as a high-return business that relied on raw computing force to solve equations and release new coins. That edge faded as more players joined and rewards tightened. Just as that slowdown set in, demand for AI-related computing surged and pulled attention toward assets miners already controlled.
These conversions are not simple.AI workloads need stronger cooling and faster networks. They also require swapping Bitcoin machines for graphics processing units.
Still, signing leases with miners lets tech companies grow faster and spend less than building new sites from scratch. Many miners continue Bitcoin work while bringing in longer contracts from customers with deep pockets.
“The opportunity for miners to convert to AI is one of the greatest opportunities I could possibly imagine,” said Adam Sullivan, chief executive of Core Scientific. Adam led the company toward AI-focused centers while keeping some Bitcoin activity running.
That move has lifted share prices across the sector. The CoinShares Bitcoin Mining ETF is up about 90% this year, even as Bitcoin erased its gains for 2025.
The fund holds companies such as Cipher Mining and IREN, both of which jumped after signing long-term deals with Amazon and Microsoft. Core Scientific’s shares quadrupled in 2024 after its first AI contract in February and are up another 10% this year. The company plans to exit bitcoin mining by 2028.
Power flexibility keeps some miners tied to Bitcoin operations
For other companies, AI plans act as protection against the limits baked into mining itself. Bitcoin supply is capped at 21 million coins, and the halving every four years cuts rewards again. Price swings add more pressure, making steady income harder to find.
CleanSpark raised $1.15 billion to expand data-center infrastructure but kept its Bitcoin mining business intact. One reason lies with utilities. Power companies want partners that can quickly reduce usage when grids strain. Bitcoin sites can shut down fast, something always-on AI centers cannot do.
Matthew Schultz, chief executive of CleanSpark, explained the appeal. “If and when there’s a weather-related event or anything else, we can curtail a portion of the portfolio to help stabilize the grid,” Matthew said. “And what we found is the demand for that type of load is much greater.”
CleanSpark shares are up 25% this year.
Not every miner fits the bill. Moving from Bitcoin mining to high-performance computing costs serious money, and upgrades run deep.
“Bitcoin miners have an advantage in understanding power and its use but there’s a night and day difference between mining and HPC support,” said Kevin Dede, senior research analyst at H.C. Wainwright. “It’s more than an order of magnitude of intensity and complexity.”
The push into AI also carries risk. Some investors worry valuations are stretched, and spending is heavy.
Another outcome could hit closer to home. As more companies redirect capacity, U.S. Bitcoin mining output could fall and move overseas, clashing with President Trump’s goal of keeping Bitcoin “mined, minted and made in the United States.”
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