Hut 8, IREN Seal Multibillion-Dollar AI Deals, Lift Mining Stocks

Bitcoin mining margins have tightened since the network’s April 2024 halving cut the block reward to 3.125 BTC, leaving operators more exposed to bitcoin prices, network difficulty and power costs. Public miners have responded by repurposing grid connections, land and data-center capacity for artificial intelligence and high-performance computing, where multiyear hosting contracts can provide steadier cash flow. The shift is recasting listed miners as digital-infrastructure companies rather than pure proxies for bitcoin production.

BlocksBridge Consulting said in an analysis published Aug. 13, 2026, that aggregate hashrate among publicly traded bitcoin miners fell 13.4% over six months as capacity moved toward AI and HPC. TeraWulf’s second-quarter HPC leasing revenue rose 52% from the prior quarter to $31.9 million, accounting for 71% of total revenue, while bitcoin-mining revenue dropped 73% year on year to $12.8 million. Core Scientific also generated most of its revenue from non-mining operations, underscoring the sector’s accelerating pivot.

Bitcoin miners have been repurposing power, land and data-center infrastructure for artificial intelligence and high-performance computing hosting, seeking steadier revenue after Bitcoin’s April 2024 halving reduced mining rewards. The strategy matters because long-term AI contracts could lessen the industry’s exposure to volatile cryptocurrency prices and shrinking mining margins, while positioning operators as suppliers of scarce, power-ready computing capacity.

The latest analysis shows that announced AI and HPC hosting contracts are growing in scale, but Wall Street’s initial enthusiasm is fading. The average share-price gain on announcement days has dropped to about 10% in recent deals from roughly 24% during the pivot’s earlier phase. Investors are increasingly rewarding operators that can secure financing, deliver capacity on schedule, attract credible customers and convert contracts into operating cash flow.

Bitcoin completed its fourth halving on April 20, 2024, cutting the block reward from 6.25 to 3.125 Bitcoin. Combined with high energy and equipment costs, the reduction has continued to squeeze mining margins. Large miners are therefore converting their existing power capacity, facilities and cooling systems into AI and high-performance computing data centers in pursuit of more stable, long-term revenue.

Shares of miners making major bets on AI have recently far outperformed Bitcoin, but valuations have begun to diverge based on power capacity, financing capabilities and progress in delivering data centers. Nvidia’s plan to issue $20 billion in bonds to fund its AI expansion underscores strong demand for computing infrastructure. It also highlights the substantial capital spending and execution risks miners still face in making the transition.

Bitcoin miners traditionally used energy-intensive computing to maintain the blockchain, but their grid connections, land, cooling systems and data centers can be converted relatively quickly into high-performance computing facilities for AI. Bitcoin completed its fourth halving on April 20, 2024, cutting the block reward to 3.125 BTC. The resulting pressure on mining revenue has also prompted operators to seek more stable income from AI hosting.

In a May 19, 2026, report, Bernstein estimated that publicly traded Bitcoin miners control more than 27 GW of planned power capacity. The industry has announced more than $90 billion in AI agreements covering about 3.7 GW. Bernstein also assigned outperform ratings to IREN, Riot Platforms, CleanSpark and Core Scientific, underscoring how access to power has become a bottleneck for AI data-center expansion.