Bitcoin Miners Sit on Prime Power Assets as AI Pivot Accelerates: Canaccord

Bitcoin BTC$114,183.19 Mining still generates almost all of the sector’s revenue even as the focus shifts to artificial intelligence (AI), broker Canaccord Genuity said in a report on Tuesday.

However, the pivot makes sense as miners have built a vast energy infrastructure for bitcoin that now positions them to power the next wave of AI data centers, said Canaccord analysts, led by Joseph Vafi.

The evolution of the sector will accelerate, driven by increasing investment in AI, more AI-miner deals, lower funding costs and new corporate structures. However, bitcoin mining fundamentals remain strong, with prices near record highs and costs ranging from $30,000 to $40,000 per coin, analysts wrote.

Efficiency gains, improved power strategies — particularly in Texas — and fleet upgrades have kept the major miners profitable and dominant, the report said.

Canaccord says cheaper capital and investor demand are opening up new avenues, from renting GPUs to miners building their own AI clouds.

Cipher Mining (CIFR) and IREN (IREN) recently issued billion-dollar zero-coupon convertible bonds, while IREN and Hive Digital (HIVE) already operate GPU cloud platforms.

Hut 8 (HUT) spinout of American Bitcoin (ABTC) highlights a broader shift toward separating mining and energy operations to unlock value and focus growth, the report added.

Read more: Bitcoin mining profitability fell more than 7% in September: Jefferies