Bitcoin miners sign $150B in AI deals as Bernstein stays bullish

Bitcoin mining companies have secured more than $150 billion in combined AI data center contracts as the sector pivots from digital asset infrastructure to high-performance computing.

Bitcoin mining companies have signed more than $150 billion in combined AI data center contracts, with Bernstein maintaining an overweight rating on the sector.

"Access to power remains the real bottleneck for the AI industry, and Bitcoin miners with existing infrastructure are uniquely positioned to fill that gap," the Bernstein analysts wrote in a July 23 research note shared with Cointelegraph.

The investment manager's deal tracker recorded a new AI-related partnership every week in July, with combined contracted capacity exceeding 7.5 gigawatts. Hut 8 announced a 15-year, $9.8 billion lease for its Beacon Point AI data center campus in Texas, while IREN disclosed $2.8 billion in cloud services contracts with AI developers. TeraWulf signed a 20-year lease with AI startup Anthropic that could generate roughly $19 billion in contract revenue.

The convergence between Bitcoin mining and AI computing comes as data center construction faces growing bipartisan political pushback. Texas Democratic Senate candidate James Talarico proposed stronger local approval processes for data centers, while the Trump administration published a Ratepayer Protection Pledge requiring new facilities to bear their own grid costs rather than shifting them to households.

Hut 8 and IREN Lead the Pivot

Benchmark analyst Mark Palmer raised his price target on Hut 8 to $195 from $165, citing the company's "power-first" approach to AI infrastructure. The second 15-year lease at Beacon Point, adding 352 megawatts of IT capacity, brings the campus to 704 MW contracted against 1,000 MW of total utility capacity. Palmer estimates the new lease alone could contribute roughly $655 million a year in net operating income once stabilized, pushing the campus's total contract value as high as $50.2 billion if renewal options are exercised.

Hut 8 shares climbed more than 10% on the lease announcement, closing near $101. The company also holds a majority stake in American Bitcoin, the mining venture backed by Eric Trump and Donald Trump Jr.

IREN began converting its infrastructure advantage into contracted revenue through the $2.8 billion cloud services deal, though Seeking Alpha contributor The Curious Analyst flagged execution risk as the biggest threat to the thesis.

Political Headwinds Threaten Data Center Buildout

The political environment for new data centers has shifted. Oregon Senator Ron Wyden raised concerns that AI data centers could worsen water scarcity during persistent droughts, noting that large facilities can consume up to 5 million gallons of water per day. Several state governors have published plans to expand the grid for AI demand but insisted that data center operators bear the costs rather than residential customers.

For Bitcoin miners without signed contracts, the window may be narrowing. Keel Infrastructure, the rebranded successor to Bitfarms, controls a 2.2 gigawatt power pipeline across Pennsylvania, Washington and Quebec but has yet to land its first hyperscale colocation deal. The stock trades at $4.65, with BTIG initiating coverage at Buy and an $8 price target implying 72% upside — contingent on a signed customer.

The $150 billion in combined contract value across the sector shows that Bitcoin mining infrastructure has found a second life as AI compute capacity. But with political resistance mounting and execution risk remaining for companies still seeking their first hyperscaler partner, the gap between announced deals and delivered revenue will determine which miners emerge as winners.

This article is for informational purposes only and does not constitute investment advice.