The rise of artificial intelligence (AI) is transforming the Bitcoin mining industry, with AI companies competing with miners for energy infrastructure.
Several major miners are converting their capacity to AI hosting, including MARA and Core Scientific, which secured up to $1 billion in financing from Morgan Stanley to fund its AI pivot. This shift has raised concerns about the future of bitcoin mining as miners struggle with 'stubbornly low hash prices' and a looming 2028 halving event.
Analysts predict that many publicly traded miners will exit bitcoin mining in favor of AI workloads by 2027 and 2028, citing better margins for HPC and AI compared to Bitcoin mining. The valuation gap between miners and data center peers is expected to narrow as miners adapt to the changing landscape.