Institutions Accelerate Crypto Push as Bitcoin Miners Pivot to AI Infrastructure

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.

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.