BlackRock-Led $100 Billion AI Infrastructure Partnership Drives Bitcoin Miner Stock Gains

Executive Summary

A consortium comprising BlackRock, NVIDIA, Microsoft, and xAI has initiated the Artificial Intelligence Infrastructure Partnership (AIP), a strategic alliance that includes the $40 billion acquisition of Aligned Data Centers. This forms part of a broader $100 billion investment aimed at developing critical AI infrastructure. The announcement has catalyzed significant market movement, particularly within the cryptocurrency mining sector, where companies like Hut 8 Corp (HUT), Iren (IREN), Bitfarms (BITF), and CleanSpark (CLSK) recorded stock gains between 3% and 6%. This surge reflects a growing market recognition of these miners' strategic pivot towards providing AI computing infrastructure.

The Event in Detail

On September 17, 2024, BlackRock, Global Infrastructure Partners (GIP), Microsoft, and MGX officially launched the Global AI Infrastructure Investment Partnership (GAIIP), also referred to as the Artificial Intelligence Infrastructure Partnership (AIP). This collaborative effort is designed to channel substantial capital into advanced AI infrastructure. The partnership plans to initially deploy $30 billion in private equity, with a long-term objective of mobilizing up to $100 billion. These funds are earmarked for the construction of new data centers and associated energy infrastructure within the U.S. and partner nations, supporting the expanding demands of AI innovation. NVIDIA is slated to contribute its expertise in AI data centers and computing platforms to the partnership. BlackRock CEO Larry Fink emphasized the foundational role of data centers, stating that they are "the bedrock of the digital economy," and highlighted their potential to drive economic growth and technological advancements.

Market Implications

The strategic pivot by Bitcoin mining firms toward AI data center operations is primarily motivated by a significant disparity in revenue potential. Traditional Bitcoin mining yields approximately $0.17 to $0.20 per kilowatt-hour (kWh), whereas high-performance computing for AI workloads, often utilizing NVIDIA GPUs, can generate between $3 and $5 per kWh. This represents a 17- to 25-fold increase in revenue per unit of energy. Several companies are exemplifying this shift. Core Scientific forecasts $8.7 billion in revenue over 12 years from an expanded hosting agreement with CoreWeave, including a $3.5 billion deal where CoreWeave will cover $180 million in capital upgrades for 120 megawatts of additional High-Performance Computing (HPC) capacity. Google has increased its investment in TeraWulf to 14% and secured a $3.7 billion AI hosting agreement as of August 19, 2025, backed by a $1.8 billion commitment to TeraWulf's financial stability. Galaxy Digital secured a $460 million private investment to convert its former Bitcoin mining site in Texas into an AI data center, with a 15-year lease agreement with CoreWeave projected to generate over $1 billion in annual revenue. This transition also reconfigures the financial profile of these companies, shifting them from entities highly correlated with Bitcoin prices to hybrid firms combining commodity-linked income with stable, contracted service revenue. The capital stability provided by long-term AI contracts allows for financing infrastructure expansion in varying market conditions. The broader AI cryptocurrency market, with a current market capitalization of $23.2 billion, is also poised for potential growth, with tokens associated with AI-powered projects like Artificial Superintelligence Alliance (FET), The Graph (GRT), NEAR Protocol (NEAR), and Render (RENDER) potentially benefiting from increased infrastructure investment.

Expert Commentary

Industry analysts, including those from Bernstein, have highlighted Bitcoin miners as emerging key players in the AI infrastructure boom due to their existing facilities and operational expertise. Bernstein identified Iren as a top pick among Bitcoin miners, citing the company's "deep data center expertise" and "multiple strategic pathways for a full-scale AI pivot." The analyst reiterated a Buy rating on IREN with a price target of $75, noting IREN's 3-gigawatt power portfolio offers flexibility for its AI cloud business. Despite the pivot, IREN's Bitcoin mining operations remain profitable, with a computing power increase exceeding 200% in the past year and a low production cost of approximately $36,000 per Bitcoin, contributing to $1.1 billion in annual revenue and $650 million in adjusted EBITDA. Other notable agreements include Cipher Mining's 10-year, $3 billion agreement with AI cloud provider Fluidstack, supported by $1.4 billion in financing and a 5% equity stake from Google. Furthermore, CoreWeave, which transitioned from Ethereum mining to GPU-based hosting, acquired Core Scientific in a $9 billion transaction, solidifying its position as a major supplier of computing power for AI firms.

Broader Context

This convergence of Bitcoin mining infrastructure with the broader AI compute industry signifies a fundamental shift in business models for many crypto-native firms. While presenting substantial revenue diversification and growth opportunities, this trend introduces potential implications for the decentralization of the Bitcoin network. The increasing influence of large technology firms and the concentration of hash power within larger, AI-focused mining operations raise concerns regarding regulatory vulnerabilities and centralization risks, particularly given the United States' significant control over the global Bitcoin hash rate. The competition for affordable and sustainable energy resources is also intensifying, with AI firms frequently outbidding miners due to their higher revenue generation per kWh. This evolving landscape redefines the financial characteristics of miner equities, making them less volatile proxies for Bitcoin and more akin to diversified technology infrastructure providers. Regulatory frameworks in the U.S. and other jurisdictions are also progressing, moving towards more defined structures that encourage investment and integrate blockchain technology into the broader financial sector, albeit with increasing oversight for decentralized finance and other crypto innovations. The industry's adaptation to AI demands is transforming it from a commodity-like operation susceptible to Bitcoin's price fluctuations into a critical infrastructure provider with potentially higher valuation multiples.