Listen to the article
Crypto mining stocks jumped as much as 20% led by BitMine and Cipher Mining, after Amazon unveiled plans to invest up to $50 billion in AI infrastructure for U.S. government agencies.
This shift comes as Bitcoin miners face declining profitability following the 2024 halving event. Meanwhile, demand for AI compute capacity is soaring. Tech giants now view miners’ established power infrastructure as key to rapid data center growth.
Mining Stocks Post Double-Digit Gains as Focus Shifts to Infrastructure
The crypto mining sector saw a broad rally on Monday, notching a 13.84% sector-wide gain according to SoSoValue data. BitMine soared nearly 20%, while Cipher Mining rose more than 18%.
The rally followed Amazon’s announcement of an investment of up to $50 billion in AI infrastructure for US government agencies. The plan will add 1.3 gigawatts across multiple data centers, with construction set for 2026. Agencies will gain access to AWS tools, Anthropic’s Claude AI, Nvidia chips, and Trainium chips developed by Amazon.
Amazon also announced a $15 billion investment in Northern Indiana for new data center campuses, supporting 1,100 high-skilled jobs and 2.4 gigawatts of data capacity. This expansion underscores the scale of infrastructure required for AI workloads.
Meta has intensified its AI infrastructure efforts, seeking federal approval to trade electricity alongside Microsoft for long-term energy supply. Meta’s Louisiana campus alone is expected to require three new gas-fired plants.
Bitcoin Miners Evolve Into AI Power Players
The substantial stock gains reveal how bitcoin miners are transforming operations. Declining profits after Bitcoin’s April 2024 halving prompted miners to seek new revenue streams. AI data center developers, who now face electricity shortages, see miners’ grid-integrated facilities as strategic partners.
IREN, formerly Iris Energy, signed a $9.7 billion data center deal with Microsoft, granting the tech giant early access to Nvidia GPUs. IREN’s stock has shot up 580% this year since its rebrand. Other miners showed strong performance: Riot Platforms gained 100%, TeraWulf 160%, and Cipher Mining 360%.
The combined 14 gigawatts of power capacity among US miners has become key for tech firms seeking rapid scale. Favorable US policies, including Nvidia export restrictions to China, give domestic miners a competitive edge. In contrast, Chinese miners face more regulation and import barriers.
AI data center developers are now targeting bitcoin miners. These teams are approaching mining operations already running high-capacity, grid-integrated sites. Locations like Childress, Texas, have become major hubs for combined data and mining infrastructure.
Tech Leaders Accelerate Infrastructure Investments
Global tech firms are raising around $100 billion in bond offerings to fuel new AI and cloud capabilities. Amazon, Microsoft, Google, Oracle, and Meta could spend $400 billion this year on AI and data center investments. According to Deutsche Bank, total AI-related investment could reach $4 trillion by 2030.
The move signifies a shift from cash reserves to debt financing. Meta has launched its largest-ever bond sale, totaling $30 billion, for AI infrastructure. Amazon issued a $15 billion US bond, its first in three years, attracting $80 billion in demand. Amazon holds $69.29 billion in debt and $66.92 billion in cash.
Alphabet issued a $17.5 billion US bond and a €6.5 billion European bond, bringing its total debt to $48.78 billion. The aggressive borrowing reflects the immense capital needs for AI infrastructure.
The need for energy to power AI, however, surpasses grid expansion. With slow grid development, tech companies are securing direct energy sources. Apple already has federal approval to trade electricity wholesale, reflecting a trend of tech firms managing their own energy for AI infrastructure.
The merging of crypto mining infrastructure with AI compute demand signals a major strategic shift for both sectors. As bitcoin miners pivot to AI compute, their built-in power capacity and grid-ready sites enable tech giants to deploy quickly and compete in the fast-evolving AI landscape.
