Bitcoin Miners at the Forefront of AI Data Center Development
Bitcoin (BTC) miners are increasingly being recognized as valuable partners in the construction of artificial intelligence (AI) data centers. Their substantial power supplies and operational capabilities make them ideal collaborators in this evolving landscape.
Recent developments in the AI sector, such as Core Scientific’s long-term agreement with CoreWeave and Coatue Management’s substantial investment in Hut 8, have highlighted the synergies between Bitcoin miners and AI data center operators.
Bernstein, a prominent brokerage firm, has initiated coverage on miner Iris Energy (IREN) and Core Scientific, offering optimistic outlooks on their growth prospects. Iris Energy, currently trading at $13.40, has been assigned an outperform rating with a price target of $26. Meanwhile, Core Scientific, trading at $9.79, has also received an outperform rating with a target price of $17.
Bitcoin miners currently have access to significant power resources, controlling around 6 gigawatts (GW) of power with future projections reaching up to 12 GW by 2027. This substantial power capacity, along with their positioning in power interconnect queues, can expedite the energy procurement process for potential AI partners.
With their high power density racks, advanced cooling infrastructure, and proficient data center operations, Bitcoin data centers are well-suited for retrofitting into AI data centers. Bernstein predicts that by the end of 2027, approximately 20% of Bitcoin miners’ power capacity will be allocated to AI-related activities.
The top five U.S. Bitcoin miners are anticipated to further consolidate their operations and potentially control a quarter of the global Bitcoin hashrate. Hashrate, a metric indicative of industry competition and mining difficulty, plays a crucial role in shaping the mining landscape.
Bernstein maintains a bullish stance on Bitcoin, forecasting its price to reach $200,000 by 2025, $500,000 by 2029, and surpass $1 million by 2033. The recent introduction of spot Bitcoin exchange-traded funds (ETFs) in the U.S. has bolstered the brokerage firm’s confidence in these projections.