Bitcoin Miners Pivot to AI as Mining Economics Collapse
Public bitcoin mining companies are rapidly redirecting capital and infrastructure toward artificial intelligence, marking a structural shift driven by collapsing post-halving profitability rather than short-term opportunism.
Riot Platforms Sells Bitcoin to Fund AI Expansion
Riot Platforms completed the largest bitcoin sale in its history, liquidating 1,080 BTC worth roughly $96 million. The proceeds were used to fully acquire 200 acres of land beneath its flagship data center in Rockdale, Texas, previously held under lease.The move signals a long-term commitment to repurposing mining infrastructure rather than a temporary balance-sheet adjustment.
Long-Term AI Contracts Replace Mining Revenue
In parallel, Riot signed a 10-year agreement with AMD to deliver 25 megawatts of compute capacity for AI workloads. The contract carries projected revenue of $311 million, with upside potential approaching $1 billion if fully extended.AMD also secured an option to scale capacity up to 200 megawatts, underscoring the strategic nature of the partnership rather than a pilot deployment.
Texas Becomes an AI Power Hub
Following the announcement, RIOT shares surged 16 percent. The company now controls 1.7 gigawatts of approved power capacity in Texas and plans to convert the entire 700 megawatt Rockdale site into AI-focused infrastructure.This transition effectively transforms one of North America’s largest mining campuses into a hyperscale AI facility.
The Industry-Wide Shift Accelerates
Riot is not alone. CleanSpark recently acquired 447 acres near Houston for a planned AI campus with up to 600 megawatts of capacity. Combined with its earlier acquisition in Austin County, the company’s regional potential is approaching one gigawatt.At the same time, CoreWeave has deployed 16,000 GPUs at a Core Scientific data center in Denton, Texas, dedicated to serving OpenAI workloads.
Mining Farms Become AI Data Centers
Core Scientific is investing $6.1 billion to convert former bitcoin mining facilities into full-scale AI data centers. Despite delays caused by hurricanes and contractor issues, the transition continues at industrial scale.These conversions highlight how mining infrastructure is being repurposed rather than abandoned.
Post-Halving Economics Force the Transition
The driver behind the shift is simple economics. After the 2024 halving, mining entered what TheMinerMag described as the most severe margin crisis in its history.Hashprice has fallen to approximately $35 per PH/s, while the average cost to mine a single bitcoin has climbed toward $70,000.
AI Revenue Displaces Mining Cash Flow
According to CoinShares, by the end of 2026 the share of mining revenue for companies operating AI contracts is expected to drop from 85 percent to below 20 percent.For many firms, AI hosting is no longer a diversification strategy but a replacement business model.
Conclusion
What is unfolding is not a cyclical adjustment but a structural transformation of the mining sector. Companies once criticized for energy consumption are repositioning themselves as critical infrastructure providers for artificial intelligence - the defining technological trend of the decade.Editorial Team - CoinBotLab
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