Bitcoin mining companies are uniquely positioned to benefit from the artificial intelligence boom due to their existing access to large-scale, secured power, according to a recent report from brokerage firm Bernstein. This strategic advantage allows them to bypass lengthy grid connection delays, potentially becoming key infrastructure providers for the power-hungry AI industry.
Key Takeaways
- Bernstein analysts highlight that Bitcoin miners' pre-secured power grids give them a major advantage in developing AI data centers.
- Miners have access to over 14 gigawatts of grid-connected power, which can reduce AI facility deployment times by as much as 75%.
- The report identifies IREN as a top performer, citing its significant power capacity and aggressive expansion into AI cloud services.
- IREN projects its AI cloud revenue to exceed a $500 million annualized run-rate by early 2026, funded in part by its profitable Bitcoin mining operations.
The Strategic Power Advantage
Analysts at Bernstein, led by Gautam Chhugani, released a report explaining how Bitcoin miners are becoming unexpected leaders in the race to build AI infrastructure. The core of their advantage lies in something they secured years ago: access to vast amounts of electricity.
AI data centers require immense and consistent power, and connecting new facilities to the national grid is a slow process. Developers often face multi-year delays in what are known as interconnection queues.
Bitcoin miners, however, have already navigated this process. According to the report, they have collectively secured access to more than 14 gigawatts of power. This existing infrastructure makes them attractive partners for AI companies needing to deploy new computing resources quickly.
"Access to the grid has become a very scarce resource in the U.S.," the Bernstein analysts wrote.
This ready-made infrastructure could shorten the timeline for establishing new AI data centers by up to 75%, giving miners a significant head start over competitors building from scratch.
IREN Highlighted as Industry Leader
Among the companies capitalizing on this trend, Bernstein identified IREN as its top pick. The firm gave IREN an "outperform" rating and maintained a price target of $75 for its stock.
IREN has been actively expanding its operations to serve the AI market. The company controls approximately 3 gigawatts of power capacity across North America, both operational and in development. This power is crucial for its dual operations in crypto mining and AI hosting.
IREN's AI Expansion by the Numbers
- GPU Acquisition: The company has acquired over 23,300 GPUs, including advanced models like NVIDIA's Blackwell.
- Revenue Projections: It anticipates its AI cloud services will generate more than $500 million in annualized revenue by the first quarter of 2026.
- New Facilities: Key projects include a 50-megawatt liquid-cooled data center and a large 2-gigawatt hub in Sweetwater, Texas.
This strategic pivot has been noticed by the market. According to data from The Block, IREN's stock has seen remarkable growth, rising 123% over the past month and 519% year-to-date. On Thursday, October 9, 2025, its closing price was $63.85, with a further 5.2% increase in pre-market trading the following day.
Balancing Bitcoin Mining with AI Growth
While IREN is making an aggressive push into AI, it has not abandoned its original business. The company remains one of the largest self-operated Bitcoin miners in the United States. Its mining operations provide a stable financial foundation to support its expansion into the AI sector.
A Dual-Revenue Model
Bernstein's report frames Bitcoin miners as bridging two distinct but related compute-intensive economies: the often volatile world of cryptocurrency mining and the more stable, long-term business of AI infrastructure hosting.
According to the analysis, IREN's Bitcoin mining operations currently generate approximately $1.1 billion in annualized revenue with about $650 million in EBITDA, based on current Bitcoin prices. This cash flow is instrumental in funding the capital-intensive build-out of its AI data centers.
The analysts project a significant shift in IREN's revenue composition over the next few years. They forecast total revenue to grow from $286 million in 2024 to $2.1 billion by 2027. By that time, the AI cloud segment is expected to contribute more than half of the total revenue, with high EBITDA margins around 83%.
A New Valuation for Miners
The transition toward AI services could lead to a re-evaluation of how the market values these companies. Traditionally viewed purely as cryptocurrency producers, they are now repositioning themselves as high-margin data center operators with critical infrastructure assets.
Bernstein's long-term outlook suggests a dramatic change in IREN's enterprise value. By 2027, the firm predicts that 87% of its value will come from its AI and power assets, with only 13% derived from its Bitcoin mining business.
The report emphasizes that the foresight of these companies to secure power infrastructure between 2019 and 2021 has provided them with a durable competitive edge. They can now offer scalable power and infrastructure tailored for the high-density computing that both crypto mining and AI demand.
This strategic pivot demonstrates how infrastructure developed for one technology can be effectively repurposed to meet the demands of another, placing these former crypto-pure-plays at the center of the next technological revolution.
