Bitcoin Miners Pivot to AI Data Centers as Power Infrastructure Proves Critical

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.

Bitcoin undergoes a halving roughly every four years. In April 2024, the block reward fell from 6.25 bitcoin to 3.125 bitcoin, while CoinGecko estimated the cryptocurrency’s price at about $63,000 at the time. The reward is expected to fall again to 1.5625 bitcoin in April 2028. With energy costs and competition for computing power rising, miners need revenue from AI, high-performance computing and diversified power sources to reduce their reliance on mining alone.

From March 4 to March 25, 2026, MARA Holdings sold 15,133 bitcoin worth about $1.1 billion to repurchase $1 billion of convertible debt, a move expected to reduce its debt by about 30%. Bitdeer’s bitcoin holdings had fallen to zero as of February 20. Cango, meanwhile, plans facilities that can switch between AI and mining, while miners that have secured HPC contracts now command revenue multiples more than twice those of pure-play miners.

Bitcoin mining relies on miners deploying computing equipment to secure the network with hashrate and compete for block rewards. As energy, equipment and financing costs have risen and mining revenue has come under pressure, large U.S. miners have begun redirecting capital and power resources toward AI data centers. The shift could reduce hashrate concentration and make the Bitcoin network more decentralized.

Bitcoin's network hashrate fell about 4% from the previous period in the first quarter of 2026, ending five years of growth and marking its first first-quarter decline since 2020. With mining economics deteriorating, several miners are adjusting capital spending and converting existing sites to meet demand for AI infrastructure. The reports did not identify individual companies or disclose investment amounts.

After Bitcoin's April 2024 halving, mining rewards shrank while network hashrate and electricity costs climbed. CoinShares estimates that listed miners' average cash cost per BTC reached $79,995 in the fourth quarter of 2025, above Bitcoin's roughly $68,000–$70,000 price in March 2026. Miners can repurpose their existing power capacity and data centers for AI computing, making the shift consequential for both corporate finances and Bitcoin network security.

As of March 2026, listed miners' combined BTC holdings had fallen by more than 15,000 coins from their peak. Core Scientific sold about 1,900 BTC worth $175 million in January, while Bitfarms cut its holdings from a peak of 3,301 BTC to 1,827 BTC. The industry has signed more than $70 billion in AI and high-performance computing contracts, including Core Scientific's 12-year, $10.2 billion agreement with CoreWeave.

Bitcoin mining and AI data centers both depend heavily on reliable power, but AI can generate $200–$500 in revenue per megawatt, several times the $57–$129 from mining. A miner shift to high-performance computing could raise concerns about 51% attacks if it reduces the network’s total hash rate. Critics of that view argue that difficulty adjustments would restore the balance between profitability and security.

On March 16, 2026, trader Ran Neuner said Bitcoin’s hash rate had fallen 14.5% from its October 2025 peak. Core Scientific secured $500 million in financing from Morgan Stanley on March 5, with the facility expandable to $1 billion. MARA also filed with the SEC to sell some of its BTC to fund its AI pivot.