AI Won’t ‘Kill’ Bitcoin Mining – It Might Reprice It

Since the latest Bitcoin halving cut block rewards in half, compressing revenues across the mining sector, large operators have been searching for ways to stabilize income streams. Increasingly, they are leasing their energy footprints to artificial intelligence and high-performance computing ￰0￱ model is not speculative; it is already being written into multiyear ￰1￱ September, Cipher Mining signed a 168-megawatt agreement with Fluidstack, an AI cloud ￰2￱ deal runs for ten years and is valued at $3 ￰3￱ provided financing support worth $1.4 billion and also acquired a 5% equity stake in ￰4￱ arrangement allows Cipher to maintain ownership of its facilities while converting part of its power allocation into contracted AI ￰5￱ Mining Signs 168 MW, 10-Year AI Hosting Agreement with Fluidstack In this transaction, Cipher will deliver 168 MW of Critical IT Load to Fluidstack at its Barber Lake site, securing ~$3B in contracted revenue over the initial 10-year ￰6￱ agreement also includes two… — Cipher Mining (@CipherInc) September 25, 2025 TeraWulf, another U.

S.-based miner , followed a similar ￰7￱ announced hosting agreements that dedicate more than 200 megawatts to AI workloads at its Lake Mariner ￰8￱ estimate the value of the deal could exceed $3.7 ￰9￱ That Change Miner Balance Sheets The financial character of these companies is beginning to ￰10￱ equity has historically traded with a high correlation to the price of ￰11￱ long-dated contracts give investors a different risk profile to ￰12￱ dollar-denominated payments from AI customers may reduce the exposure of miner stocks to Bitcoin cycles. Iren, an Australian operator, provides an ￰13￱ recently expanded its AI cloud business by purchasing more than 12,000 ￰14￱ company projects $500 million in annual AI revenue by early ￰15￱ at Arete initiated coverage on Iren, Riot Platforms, and Cipher Mining with buy ratings, citing the stability of contracted AI revenue as a ￰16￱ case of CoreWeave and Core Scientific stresses the point.

coreWeave, once an Ethereum miner, shifted into GPU-based ￰17￱ 2025, it acquired Core Scientific in a transaction valued at $9 ￰18￱ deal cemented its place as a supplier of computing power for AI firms, moving entirely beyond token ￰19￱ the AI Shift Is Different The entry into AI hosting is not simply ￰20￱ forces miners to rethink ￰21￱ Bitcoin mining, AI customers demand strict service level ￰22￱ centers must offer redundancy, cooling efficiency, and long-term maintenance ￰23￱ practice, this means capital is redeployed from short-cycle ASIC purchases toward infrastructure upgrades that support higher-density ￰24￱ is also the allocation ￰25￱ megawatt committed to AI hosting cannot be used for Bitcoin ￰26￱ will have to balance the immediate predictability of contracted revenue with the option value of a potential Bitcoin price ￰27￱ Hashprice to Lease Price The mining business has long been tied to hashprice, the dollar value of one terahash of computing power per ￰28￱ metric is now being supplemented by what could be called lease price, the value of contracted power sold to external ￰29￱ time, the lease price may become as influential for valuation models as the hash price ￰30￱ shift has implications for the broader ￰31￱ miners dedicate more capacity to external hosting, the growth of network hash rate may ￰32￱ could alter the competitive dynamics among remaining pure miners and impact difficulty ￰33￱ the same time, the capital stability provided by AI contracts could keep some firms alive through periods of low Bitcoin prices, preventing sharp declines in total hash rate.

A Changing Capital Formation Cycle The sector’s capital cycle is also ￰34￱ expansions were often financed during bull markets when high margins justified the rapid purchase of machines. Now, multi-year AI contracts provide the collateral base for raising capital in less favorable ￰35￱ changes the rhythm of how mining infrastructure is ￰36￱ long-term outcome is not that AI erases mining. Rather, it layers another economic activity on top of the same ￰37￱ investors, miner equities may look less like high-beta proxies for Bitcoin and more like hybrid firms that combine commodity-linked income with contracted service revenue.