NEWSLETTER
Investing.com – Analysts at Piper Sandler highlighted a promising turn for miners in a note on Wednesday, emphasizing the substantial profit potential by pivoting towards ai and High Performance Computing (HPC) data center deals.
Analysts note that bitcoin miners are still in the “early stages” of this transition, but the economic benefits are too significant to ignore.
The firm highlights growing pressure on miners to diversify their operations by converting mining sites or dedicating approved power authorizations to ai/HPC data center tenants.
This trend is said to be driven by “a significantly more attractive economics compared to the core mining business.”
Piper Sandler points to prior-year deals such as Core Scientific/CoreWeave and TeraWulf/Core42 as early indicators, with expectations for more announcements in 2025 involving major players such as digital galaxy (TSX:), Riot Platforms (NASDAQ:) and HUT 8.
A key advantage for bitcoin miners lies in their “approved access to power,” which is very attractive to ai companies, according to Piper.
Both bitcoin mining and training ai models consume a lot of energy, and the existing infrastructure of bitcoin miners is said to offer a faster and more efficient solution for ai companies, avoiding the long process of building and obtaining approval for new sites.
Piper Sandler estimates that ai/HPC data center contracts could potentially triple miners' EBITDA at certain sites.
The note also provides an overview of potential sites for companies such as RIOT, HUT, GLXY and MARA, detailing the energy authorizations and potential economic outcomes of ai/HPC deals.
While not all bitcoin miners are currently taking advantage of these opportunities, analysts suggest that those who do could see a significant boost to their financial performance.
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