Key Takeaways
- Many bitcoin miners are converting their data centers to handle AI computing.
- The value of bitcoin mining drops by 50% every four years due to “halving” events.
- Bitcoin data centers offer consistent computing power in cheap locations — just what AI companies need.
Bitcoin is violatile and the mining industry is crowded with competition. That’s the argument pushing more and more bitcoin mining operations to try a new direction: AI computing.
An increasing number of companies are now using their land and existing data centers to sign long-term contracts for artificial intelligence companies in need of computing power.
Miners including IREN, Riot, TeraWulf, CleanSpark, and Cipher Miner are among those making the switch.
AI Rises to Replace the Deflating Bitcoin Bubble
Jefferies analysts found that bitcoin mining profits fell more than 7% across September 2025, due in part to declining bitcoin value, according to a new Yahoo Finance report that highlighted the new trend.
Instead, there’s another big tech boom, as AI workloads are needed now more than ever. In fact, AI use has doubled over the past two years, as a recent Anthropic study found.
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Tech giants and AI startups from Microsoft to OpenAI to Anthropic are all pouring billions into developing and boosting AI technology, and they need what bitcoin miners already have plenty of: Consistent computing power in cheap locations.
The Impact of Bitcoin Halving Events
Every four years, bitcoin has a “halving” event, which cuts the benefits of mining in half — naturally deincentivizing mining over time, unless bitcoin’s value continues growing rapidly.
“Bitcoin mining just doesn’t cut it anymore,” Daniel Keller, CEO and co-founder of cloud infrastructure firm InFlux Technologies, told Yahoo Finance, adding that “due to halving schedules, mining is less profitable in the long run than AI computing.”
Plus, there’s one more reason making smaller computing operations attractive to AI companies.
The race to develop the best new AI tools requires quick deadlines, but top cloud giants like Amazon and Google are tied up in multi-year paperwork for their huge grids. This creates opportunities for smaller locations that had previously stuck to bitcoin mining.
Deals at Miner Riot, TeraWulf, Cipher Mining, Others
Who’s making the biggest deals in this sector? Again, Yahoo Finance has the news. For starters, Miner Riot is converting a Texas data center campus to mixed bitcoin and high-performance computing (HPC) infrastructure, which is set to start operating next year.
Together, TeraWulf and Cipher Mining have multibillion-dollar leases for decades-long team-up with AI cloud infrastructure firm Fluidstack. Galaxy Digital has plans to convert its Texas data center for AI and HPC use with cloud infrastructure company CoreWeave.
IREN also pivoting to AI back in April — its stock is up more than 500% since the start of the year.
