Bitcoin mining companies are pivoting to AI infrastructure and experiencing unprecedented stock price gains, with IREN signing a $9.7 billion data center deal with Microsoft.
The change comes after the U.S. government blocked Nvidia from exporting advanced chips to China, creating a bifurcated market in which domestic crypto miners leverage existing power infrastructure to meet burgeoning demand for AI.
Bitcoin miners survive infrastructure transformation
Following the April 2024 halving event, Bitcoin miners experienced a fundamental shift in their business model. As a result, the mine’s profitability decreased significantly. IREN (formerly Iris Energy) saw its stock price plummet to $5.13 before announcing a strategic shift. The company rebranded in November 2024, and since then, its stock has increased 580% year-to-date. Competitors Riot Platforms, TeraWulf, and Cipher Mining posted gains of approximately 100%, 160%, and 360%, respectively.
Access to a total of more than 14 gigawatts of power capacity in this sector has emerged as a key asset. Bitcoin miners own established data center facilities with cooling systems and grid connectionsIt typically takes years to develop. IREN’s agreement with Microsoft for its Prince Rupert, Texas facility includes priority access to Nvidia GB300 GPUs; the tech giant’s immediate production capacity constraints;
“The Bitcoin mining industry has shown incredible adaptability in moving from crypto validation to high-performance computing infrastructure,” said a blockchain industry analyst who requested anonymity.
This transformation reflects broader market trends. AI workloads create unprecedented demands on computing resources and power. Bitcoin miners are uniquely positioned to meet this demand.
AI companies target cryptocurrency mining assets
Microsoft’s $9.7 billion commitment to IREN proves the strategic value of cryptocurrency mining assets in AI deployments. The deal follows IREN’s $5.8 billion GPU procurement deal with Dell Technologies. This has established the company as a key player in AI infrastructure provisioning. Amazon is partnering with other Bitcoin miners as well. This trend shows that the usefulness of this sector is widely recognized.
Trading $IREN and $MSFT, my view
Probably the best deal of all the deals announced by our peers to date…we didn’t have to give up any Queen’s Warrants or stock. 20% of the advance payment can be discounted in years 3-5. I mean, it hasn’t happened before. Dell will likely fund most of the $5.8 billion in GPUs… pic.twitter.com/jMHXHPIYw8
— 𝒰𝓂𝒷𝒾𝓈𝒶𝓂 (@Umbisam) November 3, 2025
This consolidation stems from AI companies’ urgent need for computing power amid supply constraints. Additionally, traditional data center development schedules cannot keep pace with the accelerating pace of AI model deployment.
Bitcoin miner facilities are available immediately. They have existing power contracts and operational expertise to manage high-density computing environments. Investors are now looking at infrastructure metrics such as megawatt capacity, GPU allocation, and partnerships with hyperscalers. Bitcoin miners have become de facto AI infrastructure providers.
Geopolitical factors strengthen domestic Bitcoin miners
The US government’s decision to block exports of Nvidia’s Blackwell AI chips to China provides an asymmetric advantage to domestic operators. The announcement was made just before the Trump-Xi summit in Busan last week. Secretary of State Marco Rubio and other officials cited national security concerns. They claimed that advanced AI processors would significantly improve China’s technological capabilities.
Nvidia CEO Jensen Huang repeatedly sought approval for the sale. He emphasized that China accounts for about half of the world’s AI researchers and is an important market for the company. Export restrictions that first went into effect in 2022 cost Nvidia billions of dollars in lost revenue and limited Chinese companies’ access to cutting-edge hardware.
BREAKING – Nvidia CEO Jensen Huang slams the US ban on exports of AI chips to China, saying it wiped Nvidia’s market share “from 95% to 0%.” Rather than lose, China will develop alternatives.
Trump is currently destroying US businesses and the rebellion has begun pic.twitter.com/vr96uf0GUb
— Megh Updates 🚨™ (@MeghUpdates) October 20, 2025
This policy environment indirectly benefits US-based Bitcoin miners. In contrast, Chinese mining companies face a dual challenge. They are battling tough domestic cryptocurrency regulations and limited access to advanced computing hardware, which limits their ability to replicate the AI axis of U.S. industry.
Regulatory differences position US Bitcoin miners as preferred partners for US technology companies. These companies are seeking secure domestic supply chains for their AI infrastructure.
