Bitcoin Miners Sign Over $100 Billion in AI Contracts While Revenue Remains Low

Publicly listed Bitcoin miners tracked by CoinShares have signed AI and high‑performance computing (HPC) contracts totaling more than $100 billion. The contracts cover over 4 GW of capacity, but only roughly 550 MW is currently billing, producing about $1.1 billion in annualized revenue.

Valuation Premium for AI‑Focused Miners

Miners with AI or HPC contracts trade at an average enterprise‑value‑to‑next‑12‑month‑sales multiple of 12.9×, compared with 3.7× for miners without such agreements. The premium reflects the value of grid‑connected power assets that AI developers urgently need.

Power Constraints Boost Mining Campus Value

Data‑center projects face lengthy permitting and congested power grids in the United States. CoinShares identified at least 225 moratoriums or restrictions on data‑center development across 30 states, with 151 still active. A statewide pause on environmental permits for facilities of 50 MW or more in New York exemplifies these constraints.

The U.S. grid interconnection queue is about 2,600 GW, and projects slated for 2025 waited a median of more than five years from queue entry to operation. Miners that already have energized land and grid connections therefore enjoy a competitive advantage.

Economic Rationale for Converting Mining Sites

Retrofit costs to turn a Bitcoin mining site into an AI facility are estimated at $8 million‑$15 million per megawatt, versus $0.7 million‑$1 million per megawatt for new Bitcoin mining infrastructure. Despite higher costs, AI infrastructure can generate roughly $1.5 million in annual profit per megawatt—about three times the $500,000 profit per megawatt from Bitcoin mining under current conditions.

Company Actions and Market Reaction

• Core Scientific paid $41.9 million to cancel a Bitcoin mining equipment agreement and redirected the infrastructure to AI/HPC customers; its remaining self‑mining business posted a –56 % gross margin.
• Keel Infrastructure (formerly Bitfarms) shut down all Bitcoin mining on June 29, reporting no mining revenue for Q3, yet its share price surged 194 % in Q2.
• IREN’s AI cloud revenue reached $70.5 million, surpassing its Bitcoin mining revenue of $66.7 million for the first time.
• Cipher Digital halted new mining capex and expects Bitcoin production to become immaterial, aiming for an exit by end‑2027.
• TeraWulf’s HPC leases now account for 71 % of quarterly revenue, and it is winding down roughly 145 MW of mining capacity.

Ten of the 12 miners followed by CoinShares saw stock gains between 70 % and 195 % in Q2, reflecting investor optimism about the AI transition.

Backlog and Build‑Out Risks

Only about 550 MW of the contracted >4 GW is currently billing, leaving the bulk of the $100 billion backlog dependent on future construction, financing, and power‑grid upgrades. Companies such as Core Scientific (billing 437 MW), Cipher (collecting rent from its Black Pearl facility), and IREN (targeting $4 billion in annual recurring revenue by December) are actively converting capacity.

CoinShares expects AI/HPC revenue run rates to more than double in its next report, which would narrow the gap between signed contracts and actual revenue. However, delays in build‑out could leave valuations unsupported if projects fail to materialize.