America's Biggest Bitcoin Miners Are Pivoting to AI In the face of a profitability crisis, industrial-scale bitcoin miners are transforming their data centers into AI factories. One afternoon in June 2024, I stood up against the fence of a sprawling industrial facility a few miles outside of Corsicana, Texas. Over a metal gate, I watched a bright yellow excavator claw at the dirt and flatbed trucks shuttle to and fro. A hangar-like structure with a gleaming white roof stretched hundreds of meters along the opposite perimeter. The company that owned the plot, Riot Platforms, was busily constructing the world's largest bitcoin mine. A year and a half later, a projected two-thirds of the facility is being repurposed to accommodate AI and high-performance computing (HPC) tasks.

As AI companies work furiously to improve the intelligence and usefulness of their products, their demand for cheap, plentiful energy has skyrocketed. This gold rush has been extremely profitable for an unlikely beneficiary: Bitcoin miners. In recent months, major Bitcoin mining companies have started to swap out some of their mining equipment in favor of rigs used to run and train AI systems. These companies believe that AI training could provide a safer and more consistent source of revenue than the volatile crypto industry. And so far, these pivots have been warmly received by investors, leading to the market cap of 14 major bitcoin mining companies jumping in value by 22%, or 4 billion, since the beginning of June, J.P. Morgan reported on June 24. This transition reflects several trends of the moment: the roaring hype cycle of AI; the dwindling access to power, and a tenuous bitcoin mining landscape following the bitcoin halving.