Bitcoin miners and AI firms compete for cheap sustainable energy

6 days ago

Bitcoin mining companies and artificial quality information centers are progressively competing for entree to cheap, sustainable energy, which could trigger renewed organization concern successful the mining assemblage implicit the adjacent decade.

AI information centers with heavy superior reserves are opening to outbid miners for powerfulness infrastructure, with much Bitcoin (BTC) miners getting “priced out” oregon deprioritizing mining activities, according to a July 31 probe report from Bitcoin mining infrastructure supplier GoMining Institutional.

However, the flexibility of Bitcoin mining firms allows them to grow into much off-grid locations with a deficiency of high-speed net infrastructure, giving them an vantage implicit AI facilities, according to Jeremy Dreier, managing manager and main concern improvement serviceman astatine GoMining Institutional.

This increasing conflict for vigor volition pb to a renewed question of organization concern into Bitcoin mining implicit the adjacent decade, said Dreier during Cointelegraph’s Chain Reaction regular X spaces show connected Thursday.

“In the adjacent 5 to 10 years, due to the fact that of this caller conflict with AI, we’re going to spot a caller heyday for Bitcoin mining due to the fact that we present person existent organization superior coming into the space.”

Institutional superior has already flowed into US spot Bitcoin exchange-traded funds (ETFs), with Dreier calling mining investments the “next step” for these investors.

Bitcoin Miners and the Hidden War With AI (feat. GoMining) #CHAINREACTION https://t.co/zLYMxLKZfR

— Cointelegraph (@Cointelegraph) August 13, 2025

Institutions privation cheaper “virgin” Bitcoin

An organization superior rotation into Bitcoin mining firms whitethorn beryllium the adjacent logical measurement arsenic corporations investing successful Bitcoin ETFs and treasury firms look to get cheaper Bitcoin for their equilibrium sheet.

More institutions are exploring the anticipation of acquiring cheaper, “virgin” Bitcoin, alternatively of paying the spot prices connected exchanges, said Dreier. “[Institutions] privation to get existent caller recently minted Bitcoins, cheaper than they get it from the market.”

Increasingly much institutions are inquiring astir Bitcoin mining infrastructure services from GoMining successful an effort to get cheaper Bitcoin for their equilibrium sheet, Dreier told Cointelegraph.

Mining a Bitcoin costs an mean of $64,000 during the archetypal 4th of 2025 and is expected to surpass $70,000 by the extremity of the year, which is inactive 70% cheaper than today’s spot Bitcoin terms of implicit $119,050, according to a probe study by TheMinerMag.

The conflict for energy betwixt miners and AI information centers saw galore Bitcoin mining firms diversify operations to nett from this trend.

For example, Riot Platforms has halted its plans to grow its Bitcoin mining operations successful Corsicana, Texas, to research AI opportunities astatine the aforesaid tract instead.

Iris Energy besides announced a strategic pivot toward its AI unreality business, placing a self-imposed headdress connected its mining fleet expansion, signaling a “major reshuffling of priorities,” according to GoMining Institutional’s report.

However, Dreier foresees galore nationalist miners “that person jumped implicit onto the AI bandwagon” to “quickly commencement shifting backmost into investing much into Bitcoin mining,” arsenic they spot the organization superior rotation occur.

Others are doubling down connected Bitcoin mining innovation. Bitcoin-focused fintech institution Block Inc. introduced a caller cryptocurrency mining strategy designed to grow the lifespan of mining rigs and little cognition costs, flashing a imaginable boost for miners struggling to support facilities, Cointelegraph reported connected Thursday.