As the digital landscape continues to shift, Bitcoin miners are beginning to integrate artificial intelligence (AI) and high-performance computing (HPC) into their operations. This strategic shift could unlock substantial revenue potential, presenting a valuable arbitrage opportunity.
Traditionally focused on the computational power required for blockchain transactions, Bitcoin miners are now recognising the synergies between their operations and the growing demands 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 are valued significantly lower per megawatt (MW) of installed capacity compared to AI data centres, creating a lucrative arbitrage opportunity. The average Bitcoin mining site is valued at around $4.5 million per MW, while AI data centres can be valued at over $30 million per MW. If miners shift 20% of their capacity to AI/HPC by 2027, they could unlock a net present value of $37.6 billion.
Velardo pointed to Core Scientific (CORZ) as an example of a Bitcoin miner benefiting from this trend. Core Scientific recently secured a 12-year, $3.5 billion contract with AI hyperscaler CoreWeave for 200 MW of infrastructure.
“This deal has boosted Core Scientific’s market cap by $1.6 billion and positioned the company as a potential leader in the U.S. data centre market,” Velardo said.
“This is just the beginning, with more Bitcoin miners likely to follow, using their existing infrastructure to tap into the growing demand for AI/HPC services.”
The revenue potential for Bitcoin miners transitioning into AI/HPC is significant. Velardo’s analysis shows that if publicly traded Bitcoin miners reallocate 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 infrastructure conversion requiring a capital investment of $7.5 million per MW.
“Although the initial costs are high, the long-term benefits of entering the AI/HPC market could be transformative,” Velardo continued. “AI/HPC customers are often willing to fund a large portion of these capital expenditures, reducing the financial burden on Bitcoin miners and lowering their cost of capital, which makes this arbitrage opportunity even more attractive.”
However, challenges remain. Velardo cautioned: “Not all Bitcoin mining sites are suitable for AI/HPC conversion, particularly those lacking proximity to key infrastructure such as high-speed bandwidth and reliable energy sources.
“Nonetheless, those miners who can overcome these hurdles and meet the standards for AI/HPC operations could see their valuations double or triple in the coming years.”
Velardo also noted the complementary relationship between Bitcoin miners and energy grid operators. Miners are already playing a crucial role in stabilising energy grids, and their expansion into AI/HPC could further enhance their value as large-scale energy consumers.
“I believe that the integration of AI/HPC into Bitcoin mining represents a groundbreaking opportunity,” Velardo said. “This strategic shift not only diversifies revenue streams for miners but also positions them at the forefront of two rapidly growing industries.
“As more miners explore this path, I anticipate significant market shifts, with Bitcoin miners potentially doubling their market capitalisations by 2028.”
