Bitcoin mining firms are unexpectedly emerging as key beneficiaries of the burgeoning artificial intelligence sector, according to a recent analysis. The core of this advantage lies in their pre-existing, substantial energy infrastructure, a critical and often scarce resource for the rapidly expanding AI data center market.
Bernstein analysts, led by Gautam Chugani, highlight that Bitcoin miners possess a significant edge due to their established access to vast, secured energy supplies. This positions them advantageously as AI cloud providers grapple with an escalating demand for data processing power, which is frequently hampered by electricity shortages and lengthy connection delays. With over 14 gigawatts of connected capacity, much of it in regions favored for renewable energy, these miners are poised to supply the necessary infrastructure. This ready-made capacity can potentially reduce AI center deployment times by as much as 75%, transforming miners into vital partners for major technology corporations.
Among the notable players, IREN stands out. Recognized by Bernstein as a top pick with an “outperform” rating and a $75 price target, IREN is currently the largest publicly traded Bitcoin miner by market capitalization. The company commands approximately 3 gigawatts of power capacity across North America and is actively pivoting towards AI computing services. IREN has already secured over 23,000 GPU units, including NVIDIA’s latest Blackwell chips, and projects annual revenues of $500 million from AI-related activities by early 2026.
Recent initiatives include the development of a 50-megawatt liquid-cooled data center and a 2-gigawatt expansion hub in Sweetwater, Texas. Investor sentiment reflects this strategic shift, with IREN’s stock surging over 500% year-to-date.
Despite this strategic diversification into AI, IREN maintains a strong presence in Bitcoin mining, boasting around 50 EH/s of hashrate. This operation generates an estimated $1.1 billion in annual revenue and $650 million in EBITDA, providing a robust cash flow that underpins its rapid expansion into the AI cloud sector.
Bernstein analysts anticipate IREN’s total revenue to reach $2.1 billion by 2027, with AI operations contributing the majority and achieving EBITDA margins close to 83%. The firm suggests that companies like IREN are effectively bridging the gap between the cyclical, energy-intensive Bitcoin mining economy and the more stable, scalable AI infrastructure market.
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