Miners' $100 Billion AI Backlog Faces Reality Check

Bitcoin miners have signed over $100 billion in AI contracts, but only about $1.1 billion of annualized revenue has been generated so far.

The disparity is largely due to a shortage of grid-connected power, which is now being seen as a valuable asset in the industry.

Mine operators with existing grid connections are benefiting from the shift, with their valuations rising by an average of 12.9 times enterprise value to next-12-month sales compared to 3.7 times for those without AI or high-performance computing (HPC) capacity.

Some miners, such as Keel Infrastructure and Core Scientific, have even paid to leave the Bitcoin mining business behind in order to focus on AI and HPC contracts.