Bitcoin Miners Transitioning to AI Data Centers Rather Than Cryptocurrency – ETF Trends
The landscape of Bitcoin mining is experiencing a significant shift that has the potential to redefine the industry as a whole. Companies are moving away from traditional cryptocurrency mining towards establishing high-performance computing infrastructure. This change is expected to result in a substantial decrease in mining revenue, dropping from 85% of total revenue in early 2025 to less than 20% by the conclusion of 2026 for entities that have secured AI contracts, as outlined in the 2026 outlook by CoinShares.
The transition signifies a strategic departure from the previously volatile and low-profit mining activities towards more stable and lucrative data center agreements with leading tech giants. Enterprises that have embraced this pivot stand to gain substantial operating margins ranging between 80% to 90% through their AI collaborations, a stark contrast to the meager margins associated with Bitcoin mining endeavors.
By October 2025, Bitcoin miners collectively had inked contracts worth $65 billion with major tech firms and cloud service providers, as indicated by CoinShares. These AI contracts are reported to generate three times the revenue on a per-megawatt basis compared to the traditional mining operations. Notably, six publicly traded mining companies have already publicized high-performance computing contracts, including Core Scientific, Cipher Mining, TeraWulf, Applied Digital, Galaxy Digital, Iris Energy, and Bit Digital.
Despite the move towards AI-centric ventures, publicly traded mining companies managed to enlarge their Bitcoin mining operations throughout 2025. These listed miners jointly enhanced their mining computing capacity during the first nine months of 2025 compared to the same period in 2024. The growth was primarily fueled by equipment orders placed in 2024 that were executed this year, propelling the sector forward.
Investors seeking exposure to this evolving industry can consider the CoinShares Bitcoin Mining ETF (WGMI), which strategically invests at least 80% of its net assets in companies deriving a significant portion of their revenue from Bitcoin mining activities or supplying chips, hardware, software, or services to mining enterprises. With an expense ratio of 0.75%, WGMI has delivered a notable return of 72.05% in the past year and currently boasts $301.9 million in assets under management since its launch in February 2022.
In conclusion, the transformation of Bitcoin miners from cryptocurrency to AI data centers signifies a progressive shift within the industry towards more stable and high-margin ventures. With major players already leveraging AI contracts to enhance revenue streams, the sector is set to embark on a new era defined by technological advancements and strategic partnerships with leading tech entities.
