As the digital world continues to expand, Bitcoin miners are turning to artificial intelligence (AI) and high-performance computing (HPC) to enhance their operations and tap into new revenue streams. This strategic move could unlock vast revenue potential, creating a valuable arbitrage opportunity in the market.
Traditionally focused on blockchain transaction processing, Bitcoin miners are recognising the overlap between their infrastructure and the growing needs of AI and HPC.
Antonio Velardo, a seasoned analyst and trader, explained: “This convergence is driven by the growing energy needs of AI companies, which align closely with the capabilities of Bitcoin miners. By repurposing a portion of their infrastructure to support AI/HPC, Bitcoin miners can capitalise on the booming AI market.”
Currently, Bitcoin miners trade at a significantly lower valuation per megawatt (MW) of installed capacity compared to AI-focused data centres, offering a compelling arbitrage opportunity. While the average Bitcoin mining facility is valued at around $4.5 million per MW, some AI data centres command valuations exceeding $30 million per MW. By transitioning 20% of their capacity to AI/HPC by 2027, Bitcoin miners could unlock a net present value of $37.6 billion.
Velardo highlighted Core Scientific (CORZ) as a key player in this trend. The company recently secured a 12-year, $3.5 billion deal with AI hyperscaler CoreWeave for 200 MW of infrastructure.
“This deal boosted Core Scientific’s market cap by $1.6 billion, establishing it as a leader in the U.S. data centre market,” Velardo said.
“This is only the beginning, as more Bitcoin miners are likely to follow suit, using their existing assets to support the growing demand for AI/HPC services.”
Velardo’s analysis shows that if publicly traded Bitcoin miners allocate 20% of their energy capacity to AI/HPC, they could generate an additional $13.9 billion in annual profits over the next 13 years. This estimate is based on an average revenue of $9.11 million per MW, with capital investment for infrastructure conversion projected at $7.5 million per MW.
“Although the upfront costs are significant, the long-term rewards of entering the AI/HPC market could be transformative,” Velardo noted. “AI/HPC customers are often willing to cover a large share of these expenses, reducing the financial burden on Bitcoin miners and lowering their capital costs. This enhances the appeal of the arbitrage opportunity I’ve identified.”
Velardo cautioned, however, that not every Bitcoin mining site will be suitable for conversion to AI/HPC. “Sites lacking proximity to essential infrastructure, such as high-speed bandwidth and stable energy sources, may face difficulties in making the switch.”
“Nevertheless, those miners who are able to convert could see their valuations double or even triple in the coming years,” Velardo added.
He also noted the complementary relationship between Bitcoin mining and energy grid operators, highlighting that miners already play a crucial role in grid stabilisation. Expanding into AI/HPC could further increase their value as large-scale energy consumers.
“The integration of AI/HPC into Bitcoin mining operations is a groundbreaking opportunity,” Velardo concluded. “This strategic pivot not only diversifies revenue streams but positions Bitcoin miners at the forefront of two fast-growing industries.”
