Bankrupt Bitcoin Miners Reinvent as AI Data Centers

Bitcoin miners are abandoning unprofitable crypto operations and pivoting to AI infrastructure. With production costs hitting $79,995 per coin against a $70,000 Bitcoin price, and the April 2024 halving slashing revenues in half, the math simply stopped working. The industry has now signed over $70 billion in AI and high-performance computing contracts. Major deals include Core Scientific's $10.2 billion CoreWeave partnership, TeraWulf's $12.8 billion in contracted HPC revenue, and Hut 8's $7 billion AI lease. Morgan Stanley now covers these firms as energy infrastructure plays, rating Cipher Mining and TeraWulf as Overweight. Public miners are expected to derive 70% of revenue from AI by end of 2026.