3 Crypto Companies Jumping on the AI Bandwagon – And Getting Higher Premiums
The economics of crypto mining are shifting. Rising costs, particularly for electricity and the computational hash rate for cryptocurrencies such as Bitcoin, make the mining industry less profitable.
Crypto mining companies are shifting to AI as a result. Why? For starters, AI training could provide a safer and more consistent source of revenue than the volatile crypto industry.
Why Crypto and AI Companies Are Offering The Best Returns On Wall StreetThe crypto market’s inherent volatility makes revenue unpredictable.
In contrast, AI data centers offer recurring revenues, which have high growth and consistently high profit margins.
Meanwhile, Bitcoin’s 2024 halving cut mining rewards in half. That forced mining companies to reassess their business models.
Right now, the economics are compelling. AI data centers offer dramatically better returns on the same infrastructure. They can generate up to 25 times more revenue per kilowatt-hour than traditional crypto mining operations.
Also, crypto mining companies stand in a strong position to benefit from AI demand.
WHY ARE CRYPTO MINERS SUDDENLY AN AI PLAY?$IREN $WULF $HUT $MARA $RIOT $CIFR $CORZ all shifting from mining coins to leasing out power, GPUs, and datacenters for AI compute.
Here’s why I think it is:
POWER IS THE NEW CURRENCY
The real treasure isn’t $BTC, it’s electricity.… pic.twitter.com/xTnMjgbzmk
They have power agreements, data center locations, agreements for low-cost electricity – a powerful recipe for meeting today’s AI demand.
More importantly, by shifting to serving AI needs, crypto mining companies can benefit from a higher market valuation as the AI story plays out.
Dozens of former Bitcoin mining firms have begun to repurpose their infrastructure into AI data centers, turning their GPU-rich, power-intensive setups into rentable compute farms for training, inference, and high-performance computing.
As these companies shift from a Bitcoin or broader crypto play to AI, they’re also being treated as AI plays. As a result, their stocks are seeing a higher share price and valuation.
With dozens of opportunities in the space today and more upside ahead as data centers continue to be built out globally, many companies look attractive as small-cap opportunities amid the AI buildout today.
Shark Tank's famous 'Mr. Wonderful' Kevin O'Leary talks about his crypto strategy and Bitcoin outlook in the latest BeInCrypto podcast.@kevinolearytv explains his current investment positions, stake in @bitzerodotcom, and much more