Bitcoin and AI Compete for Resources as Mining Industry Shifts

Bitcoin and artificial intelligence (AI) are increasingly competing for resources such as speculative capital, electricity, and data-center capacity. Peter Schiff, a longtime gold advocate, argues that AI represents a threat to Bitcoin rather than a bullish catalyst.

Schiff claims that the two industries are vying for investment capital, with the scale of AI spending creating an alternative destination for technology-focused capital. He also highlights the infrastructure argument, citing companies like IREN and TeraWulf, which have redirected their power-backed infrastructure toward AI workloads.

For example, IREN has secured a $9.7 billion Microsoft agreement for AI cloud infrastructure, while expanding its capacity to serve large-scale computing workloads. TeraWulf signed a long-term agreement with Anthropic covering roughly 401 MW of critical IT capacity, with approximately $19 billion in contracted revenue expected over the initial term.

Core Scientific has also expanded beyond traditional mining through long-term high-performance computing agreements with CoreWeave. The company has turned portions of its power infrastructure toward AI workloads, showing how mining facilities can serve customers outside the Bitcoin industry.