Bitcoin miners have a shot at pulling in an extra $14 billion every year by 2027, but not by sticking to just mining Bitcoin. The real money could be in feeding energy to AI and high-performance computing (HPC).
According to VanEck, these miners have the power AI companies desperately need, and the potential profits are massive.
With AI demand for energy skyrocketing, miners could be sitting on a goldmine—if they play their cards right.
VanEck sees a big arbitrage opportunity here—basically, Bitcoin miners could be undervalued when you consider their potential role in the AI sector.
The AI energy demand is real
So get this. AI companies need a huge amount of power, and they need it now, not years from now. But building new data centers takes time—lots of it. We’re talking about waiting over four years for some new developments to get off the ground.
In contrast, Bitcoin miners already have the infrastructure and can pivot to providing energy to AI within a year. This gives them a serious edge, especially since energy demands from both Bitcoin mining and AI are causing massive delays in North American power grid connections.
The power Bitcoin miners control is commanding a premium right now, and they’re in a position to cash in. Companies like Core Scientific are already leading the way. It recently struck a 12-year deal with AI giant CoreWeave to supply 200 MW of power.
That’s expected to bring in over $3.5 billion. They’ve already expanded the deal twice, tacking on another $1.225 billion and later an extra 112 MW.
If CoreWeave keeps expanding, Core Scientific could become one of the biggest data center operators in the U.S., all because of the energy they were already using to mine Bitcoin, says VanEck.
Bitcoin miners need to reap AI profits
If Bitcoin miners move even 20% of their energy to AI and HPC by 2027, the profits could be huge. We’re talking about $13.9 billion annually, based on current projections. That’s a massive leap from where these miners are now.
The numbers are big because the demand is real, and the price AI companies are willing to pay for power is high. VanEck’s analysis estimates that each megawatt (MW) of power could generate around $9.11 million in revenue every year.
But it’s not just about flipping a switch. Transitioning from Bitcoin mining to AI energy supply isn’t cheap. The capital expenses are enormous. For example, retrofitting mining infrastructure to suit AI demands could cost around $7.5 million per MW.
And that’s just the start. The cost of GPUs—like Nvidia’s H100—could run up to $54.7 billion. VanEck’s model also factors in the need to replace GPUs every four years, which adds even more to the total investment required.
The good news? AI companies are willing to foot the bill. They’re providing most of the capital needed to retrofit Bitcoin mining sites, which makes the transition a lot less risky for miners.
However, it’s not all smooth sailing. Many Bitcoin miners have a history of shaky finances—too much debt, too many shares issued, or bloated executive paychecks. But the AI opportunity could be a game changer.
If done right, it could double the value of some Bitcoin mining stocks. Miners like CORZ and Terawulf (WULF), who are already making moves into AI, are outperforming others in the sector, proving there’s real money to be made.
