Digital Infrastructure Bid Expands Beyond Bitcoin Miners

The digital infrastructure bid is broadening its reach beyond Bitcoin miners to include AI data center companies. This trend is benefiting Applied Digital and IREN Limited, both of which have seen their stocks climb 6% on Tuesday. Core Scientific's stock has also risen by 4%, as it converts capacity into high-density colocation.

The hyperscaler demand for digital infrastructure is driving this shift. Companies like NVIDIA and AMD are partnering with data center operators to meet the growing need for AI computing power. Cipher Mining is also pivoting its Black Pearl campus into HPC colocation, adding a new name to the group with contracted compute revenue in view.

The companies that are repurposing their mining facilities to support high-density colocation business have a significant advantage over those still leaning on hash rate. Core Scientific's anchor customers include CoreWeave and AMD, which have signed 12-year and 15-year take-or-pay contracts respectively. The company has a total leased customer power capacity of roughly 1.1 GW across seven U.S. states.