Bitcoin delivered extraordinary returns to early investors, and now its miners may be next in line. The infrastructure built for mining Bitcoin is proving to be a hidden asset in the artificial intelligence boom. These facilities, designed for high-performance computing, are well suited to support AI workloads. According to Hive Digital Technologies Executive Chairman Frank Holmes, building a data center from scratch takes about three years. However, upgrading an existing Bitcoin mining facility for AI use can take as little as nine months.
Investors Reframe Miners as AI Powerhouses
Hive Digital Technologies, with a market cap exceeding $600 million, is no longer seen solely as a crypto miner. The company positions itself as a vertically integrated, renewable-powered AI infrastructure firm. Analysts have set ambitious price targets between $6 and $12, compared to its current trading price of around $3. Citadel Securities recently disclosed a 5.4 percent stake in Hive, signaling growing institutional interest. Hive’s move to establish its headquarters in the United States also paves the way for future inclusion in the Russell 2000 index, which could attract even more capital.
Big Tech and Governments Fuel the AI Opportunity
The AI opportunity for Bitcoin miners extends far beyond tech giants. While companies like Alphabet have already inked billion-dollar deals with miners such as TeraWulf, Holmes believes the real growth will come from military and government contracts. Autonomous drones, vehicles, and battlefield robotics all require robust AI data centers. Sovereign data centers could become a major growth area, with Bitcoin miners uniquely positioned to meet this demand due to their existing infrastructure and access to energy.
Valuations Suggest Room to Run
Despite their strategic advantage, Bitcoin miners remain undervalued compared to traditional data center stocks. Holmes points out that while data center ETFs trade at around 20 times EBITDA, miners like Hive trade at less than 2 times. CoreWeave, which began as a crypto miner, now boasts a $50 billion valuation after pivoting to AI. With AI generating real revenue, OpenAI reportedly reached $1 billion in monthly income within two years, the sector is proving its staying power. Stocks like Hive, IREN, and Cipher Mining have already seen significant gains, and the momentum may just be beginning.
Frequently Asked Questions (FAQs)
- What makes Bitcoin miners suitable for AI infrastructure?
Their existing data centers are optimized for high-performance computing and can be upgraded quickly to support AI workloads.
- Why are investors interested in Bitcoin miners now?
Miners are being revalued as AI infrastructure providers, offering exposure to the fast-growing AI sector at lower valuations.
- Is this trend limited to tech companies?
No. Governments and militaries are expected to become major clients for AI data centers, expanding the opportunity beyond Silicon Valley.
