Bitcoin miners turn to AI data centers, but funding costs stay high

Bitcoin mining companies are seeking to convert their power-connected sites into AI and high-performance computing data centers to diversify revenue. The shift could require nearly $50 billion in near-term spending, with AI-ready liquid-cooled facilities costing $8 million to $15 million per megawatt versus $700,000 to $1 million for traditional mining sites. Lenders are becoming more selective, and despite over $100 billion in announced AI contracts, revenue remains limited and delivery delays pose risks.

Mining firms own grid-connected land suited to large power loads, giving them a possible route into AI and high-performance computing. Yet such conversions demand sturdier buildings, advanced cooling, fast links, backup power, and near-continuous uptime. A standard mining site may cost $0.7–1 million per megawatt; liquid-cooled AI-ready capacity may run $8–15 million per megawatt.

IREN’s June $3.65 billion GPU financing carried roughly 6% average interest, while a $2.4 billion deal two months later had a 9% fixed rate. June estimates put IREN’s uncovered need at $21.1 billion, Riot at $7.2 billion, and HIVE Digital at $4.6 billion. Sector-wide near-term needs are about $50 billion, with longer-term needs possibly near $221 billion.