As the digital landscape continues to evolve, Bitcoin miners are now exploring the integration of artificial intelligence (AI) and high-performance computing (HPC) to enhance their operations. This strategic shift could unlock significant revenue potential and create a promising arbitrage opportunity.
Bitcoin miners, traditionally focused on the computational power required for blockchain transactions, are beginning to see the overlap between their operations and the needs of AI and HPC.
Antonio Velardo, an experienced analyst and trader, commented: “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.”
At present, Bitcoin miners are valued far lower per megawatt (MW) of installed capacity compared to AI-focused data centres, presenting a lucrative arbitrage opportunity. The average Bitcoin mining facility is valued at around $4.5 million per MW, while AI data centres can command valuations exceeding $30 million per MW. By reallocating 20% of their capacity towards AI/HPC by 2027, Bitcoin miners could unlock a net present value of $37.6 billion.
Velardo highlighted Core Scientific (CORZ) as a leading example of this trend. Core Scientific recently secured a 12-year, $3.5 billion contract with AI hyperscaler CoreWeave, providing 200 MW of infrastructure.
“This deal has not only boosted Core Scientific’s market cap by $1.6 billion but also positioned the company as a leader in the U.S. data centre market,” Velardo said.
“This is just the beginning, and more Bitcoin miners are expected to follow, using their infrastructure to meet the rising demand for AI/HPC services.”
The revenue potential for Bitcoin miners shifting to AI/HPC is substantial. Velardo’s analysis suggests that if publicly traded Bitcoin miners shift 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 projection assumes an average revenue of $9.11 million per MW, with capital investment for infrastructure conversion estimated at $7.5 million per MW.
“Although the upfront costs are high, the long-term rewards of entering the AI/HPC market could be transformative,” Velardo continued. “AI/HPC customers often cover a large portion of these capital expenditures, easing the financial burden on Bitcoin miners and lowering their cost of capital. This, in turn, increases the attractiveness of the arbitrage opportunity I’ve identified.”
However, Velardo warned that not all mining sites are suitable for AI/HPC conversion. “Sites that lack proximity to major cities or essential infrastructure like high-speed bandwidth and reliable energy sources may struggle to convert.”
“Still, those miners who meet these requirements could see their valuations double or triple in the coming years,” Velardo noted.
Velardo also emphasised the relationship between Bitcoin mining and energy grid operators. Miners already play a vital role in stabilising energy grids, and their expansion into AI/HPC could further increase their value as large-scale, flexible energy consumers.
“I believe that integrating AI/HPC into Bitcoin mining represents a revolutionary opportunity,” Velardo concluded. “This strategic shift not only diversifies revenue streams but also positions miners at the forefront of two rapidly growing sectors.
“As more miners pursue this path, I anticipate significant shifts in the market, with Bitcoin miners potentially doubling their market capitalisations by 2028.”
