Bitcoin miners have signed greater than $100 billion in AI contracts whereas producing barely $1.1 billion in annualized income.
Greater than 4 gigawatts of synthetic intelligence and high-performance computing capability are below contract throughout publicly traded miners tracked by CoinShares, however solely about 550 megawatts are at the moment billing.
Nonetheless, buyers are assigning a steep premium to firms making the AI transition. Miners with contracted AI or HPC capability commerce at a mean of 12.9 occasions enterprise worth to next-12-month gross sales, in contrast with 3.7 occasions for miners with out such agreements.
Nonetheless, this premium is more and more tied to an asset miners gathered for Bitcoin however AI builders now badly want: grid-connected energy.
Scarce energy turns mining websites into premium AI belongings
The worth of present mining campuses is rising as new data-center tasks run into longer allowing processes and more and more congested energy grids throughout the US.
CoinShares recorded at the least 225 moratoriums or restrictions on data-center growth throughout 30 states, with 151 nonetheless in pressure, in its newest business report. New York has launched a statewide pause on environmental permits for amenities of fifty megawatts or extra, whereas restrictions have unfold at state and county ranges elsewhere.
These constraints are colliding with a US grid interconnection queue of roughly 2,600 gigawatts. Tasks accomplished in 2025 waited a median of greater than 5 years between getting into the queue and changing into operational, giving miners with energized land and present grid connections a bonus over builders ranging from scratch.
The potential revaluation is substantial.
A current transaction cited by CoinShares valued three absolutely leased Northern Virginia AI information facilities at roughly $27 million per megawatt. Some publicly traded miners with energized however unleased capability are valued beneath $3 million per megawatt.
That hole exists regardless of the excessive price of turning a BTC mining web site into an AI facility. CoinShares estimates retrofits can require about $8 million to $15 million per megawatt, in contrast with roughly $700,000 to $1 million per megawatt for Bitcoin mining infrastructure.
Nonetheless, the economics can nonetheless justify the expense. AI infrastructure at the moment generates an estimated $1.5 million in annualized revenue per megawatt for miners, roughly 3 times the $500,000 obtainable from Bitcoin mining below present situations.
Buyers have responded earlier than most of that income has arrived. Ten of the 12 mining firms adopted by CoinShares gained between 70% and 195% throughout the second quarter. Keel Infrastructure, previously Bitfarms, surged 194.4% even because it shut down its Bitcoin mining operations.
Miners are actually paying to depart Bitcoin
The monetary incentive has turn into sturdy sufficient that some operators are absorbing losses and abandoning gear to speed up the transition.
Core Scientific paid $41.9 million throughout the second quarter to terminate an settlement protecting about 15 exahashes per second of next-generation Bitcoin mining gear because it redirects infrastructure towards AI and HPC prospects.
Its remaining self-mining enterprise posted a -56% gross margin throughout the interval. Some machines proceed working partly to offset energy obligations whereas websites are transformed to different makes use of.
Keel has gone additional. The corporate shut down its remaining Bitcoin mining operations on June 29 and is anticipated to report no mining income within the third quarter, making its almost 200% share-price rally throughout the second quarter one of many clearest examples of buyers rewarding the transition.
IREN plans to considerably full its transfer away from mining by Dec. 31 after recording lots of of tens of millions of {dollars} in impairments and markdowns on mining gear.
Its income combine has already flipped. AI cloud income reached $70.5 million in its newest quarter, surpassing the $66.7 million generated from Bitcoin mining for the primary time.
Cipher Digital has stopped planning new mining capital expenditure and expects Bitcoin manufacturing to turn into immaterial forward of a probable exit by the top of 2027. TeraWulf has additionally retired mining buildings as HPC leases take a bigger share of its enterprise, with these contracts accounting for 71% of quarterly income.
CoinShares estimates that at the least 35 EH/s is scheduled to depart publicly listed miners as these conversions proceed, equal to roughly 4.7% of the Bitcoin community’s current 750 EH/s hashrate.
IREN accounts for 23.2 EH/s of put in capability, whereas Cipher’s Odessa operation contributes one other 11.6 EH/s. TeraWulf is individually winding down roughly 145 MW of remaining mining capability.
In the meantime, the shift may very well be more durable to reverse whilst Bitcoin’s restoration improves mining economics.
Bitcoin’s rebound to about $77,000 has lifted hash value to roughly $38 per petahash per second per day, pushing most listed operators again above money breakeven after a tough second quarter. The weighted common ex-tax money price of manufacturing one Bitcoin reached about $75,500 throughout the interval, when the token ended June close to $58,400.
A stronger Bitcoin rally might nonetheless change capital-allocation selections for firms which have stored their mining choices open. CoinShares expects new mining funding to pay attention amongst operators together with Riot Platforms, MARA Holdings, HIVE Digital and Bitdeer, which retain larger flexibility to develop their fleets if returns enhance.
That optionality is shrinking for miners because the AI transition deepens. A number of have dedicated websites to leases lasting so long as 15 years, whereas Core Scientific’s choice to spend nearly $42 million canceling mining {hardware} illustrates how a lot capital has already been redirected.
$100 billion backlog now faces a buildout check
The identical expectations lifting miner valuations are actually pressuring operators to show signed contracts into functioning information facilities.
Solely about 550 MW of greater than 4 GW of contracted capability is at the moment billing, leaving a lot of the sector’s $100 billion-plus backlog depending on future development, financing and deployment.
The dimensions of that hole means buyers are valuing a lot of the sector on infrastructure that has but to supply income.
Among the conversion is underway. Core Scientific is billing 437 MW, Cipher started amassing hire from its Black Pearl facility in August, and IREN is concentrating on $4 billion in annual working recurring income by December.
CoinShares expects the business’s AI and HPC income run fee to greater than double by its subsequent report.
That development would start narrowing the gulf between the contracts already signed and the roughly $1.1 billion of income at the moment being generated. It will additionally strengthen the case for miners whose energy portfolios are being valued extra like future data-center platforms than Bitcoin operations.
The chance is that development, financing, or energy infrastructure fails to reach rapidly sufficient.
Billions of {dollars} nonetheless have to be deployed to transform contracted megawatts into revenue-producing amenities. Firms that full these tasks on schedule will start placing money stream behind the valuations buyers have already assigned.
These that don’t might stay priced for an AI enterprise that exists largely in backlog.
