The AI Infrastructure Gold Rush: Bitcoin Miners' Strategic Pivot
Shares of bitcoin mining companies that have shifted their business models to cater to artificial intelligence (AI) infrastructure were big winners in 2025, and this momentum has carried into the new year. If recent earnings from tech giants are any indication, these miners could continue to reap significant benefits from this strategic pivot.
Big Tech's Massive AI Investment Plans
Fourth-quarter results and 2026 outlooks from Meta (META) and Microsoft (MSFT)—both placing AI investment at the center of their growth strategies—suggest no slowdown in the AI spending binge. Meta forecasted 2026 capital spending of $115-$135 billion, well ahead of consensus forecasts of $110 billion.
Microsoft CEO Satya Nadella emphasized, "We are only at the beginning phases of AI diffusion, and already Microsoft has built an AI business that is larger than some of our biggest franchises."
Why Bitcoin Miners Are Pivoting to AI
Facing a profit squeeze from bitcoin's last halving event (which cut miners' rewards by half), higher competition, and rising power costs, mining firms have pivoted to use their data centers to host AI and cloud computing machines. This move has saved many miners from going under by allowing them to diversify revenue sources beyond bitcoin mining and capitalize on the ongoing AI hype.
Key Deals and Performance Metrics
- Iren (IREN): Announced a multiyear cloud-services contract with Microsoft to support AI workloads using advanced Nvidia chips. IREN was up 4.9% on Wednesday, bringing its year-to-date gain to 47% and year-over-year advance to 524%.
- Cipher Mining (CIFR): Signed a deal with Amazon to deliver 300 megawatts of capacity to Amazon Web Services (AWS)—one of the largest infrastructure commitments from a bitcoin miner tapping into the AI boom. CIFR is up 17% in 2026 and 322% year-over-year.
- Hut 8 (HUT): Another miner successfully pivoting to AI infrastructure and high-performance computing, up 26% year-to-date and 230% year-over-year.
What's Next: Nvidia's Upcoming Report
The sustainability of AI- and cloud-computing-related optimism will face its next test with Nvidia's report on February 25. As the leading provider of AI chips, Nvidia's performance and outlook will be crucial for miners leveraging AI infrastructure.
Read more: GPU Gold Rush: Why Bitcoin Miners Are Powering AI's Expansion
Read more: Bitcoin Miners Chase AI Demand as Nvidia Says Rubin Is Already in Production
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