Bitcoin Miners Lose Valuable Assets as OpenAI Builds Out AI Infrastructure
OpenAI's massive expansion of its AI infrastructure has sent shockwaves through the cryptocurrency mining industry. The company plans to spend $856 billion on computing infrastructure from 2026 to 2030, with a significant portion of that investment going towards securing electricity, land, and power lines for its data centers.
The growth in demand for AI systems is pushing up the value of existing power infrastructure, making it more valuable than the mining equipment itself. This has led to a bottleneck in electricity supply, with grid access becoming a major limiting factor for new projects.
According to CoinShares, the interconnection queue in the US is around 2,600 GW, demonstrating the difficulties in getting new grid connections. The company's recent acquisition of three leased AI facilities in Northern Virginia, worth $3.5 billion, has valued stabilized infrastructure at about $27 million per MW.
This shift towards AI is causing some mining companies to reevaluate their business models. Core Scientific paid $41.9 million to cancel about 15 EH/s of next-generation mining equipment, while Keel and Cipher Digital are expected to exit mining altogether by the end of 2027.
The conversion from mining infrastructure to AI infrastructure comes at a significant cost, with estimates ranging from $8 million to $15 million per MW. However, companies that can finance retrofits, secure tenants, and bring capacity online on schedule may reap substantial benefits.