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RISING TIDES
Observations from the IMC Research Process


AI’s New Power Brokers: Bitcoin Miners Rewire for the Future

 

Yesterday’s crypto miners are tomorrow’s AI landlords. Billions in deals this year are behind crypto facilities pivoting to support power-hungry hyperscalers.

  • From mining rigs to AI clusters. A growing group of miners are swapping out Bitcoin machines in favor of AI servers. Power, real estate, and cooling that once supported crypto are now being redeployed to train and host AI models. Signed and pending deals now span hundreds of megawatts per site. These pivots have accelerated as AI valuations surge and crypto mining profitability has weakened following the Bitcoin halving.
  • Evidence of scale. Contracts signed this year represent billions of dollars committed to long-term AI leases. TeraWulf, for example, projects more than half of its future revenue could come from AI hosting. Meanwhile, sector valuations are climbing as investors re-rate miners with AI exposure. Oracle’s multi-billion-dollar “Stargate” partnership with OpenAI underscores the sheer scale of compute demand that miners are stepping in to meet.
  • Leaders in the shift: TeraWulf (WULF) leads with a landmark $7B AI-hosting contract backed by Google. Riot Platforms (RIOT) is positioning its Texas buildout to attract hyperscale tenants and unlock billions in potential value. Applied Digital (APLD) recently signed two 15-year leases with CoreWeave covering 250 MW, worth ~$7B in revenue. Nebius (NBIS) secured a multi-year deal with Microsoft, reserving large-scale AI compute capacity from its new facility.

These firms, once defined by Bitcoin’s boom-and-bust cycles, now control the scarce infrastructure—cheap energy, specialized infrastructure, and cooling—needed to fuel AI’s explosive growth.

This report is provided for informational purposes only and does not constitute investment advice, a recommendation, or an offer to buy or sell any securities. IMC or its clients may hold positions in securities mentioned; the mention of specific companies does not imply endorsement or a recommendation. Past trends do not guarantee future results.

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