US Bitcoin Miners Abandon Ship as Data Centers Become New Gold Rush

Bitcoin mining profitability is deteriorating due to falling Bitcoin prices and increasing network mining difficulty. US miners are pivoting towards AI and HPC data centers, with companies like Riot Platforms and Bitdeer expanding their presence in this market.

Riot signed a 20-year lease agreement worth $9.1 billion with an AI company to utilize its 191-megawatt data center in Texas. The company's shares surged over 25% after the announcement. This move is part of a larger trend, as Bitcoin miners are increasingly seeking steadier cash flow through long-term leases instead of relying on mining.

According to Bernstein, data center contracts between Bitcoin miners and AI/cloud companies have exceeded $135 billion. The shift towards AI and HPC data centers is driven by the fact that these businesses can create far greater value from the same amount of power, with predictable revenue streams for years to come.

Clym Infrastructure, formerly Bitfarms, will shut down its US Bitcoin mining operations and convert them into AI/HPC data centers. The company has sold 1,085 BTC for $75 million to fund this transition, citing the difficulty in making additional investments in Bitcoin mining due to shrinking rewards and increasing network difficulty.