As big bitcoin miners chase AI profits, individuals get another shot at the rewards

On October 31, 2026, major U.S. bitcoin miners announced new AI‑focused partnerships and financing deals as they seek fresh revenue streams after the recent block‑reward halving. Core Scientific disclosed an expanded agreement with Nvidia‑backed CoreWeave to supply up to 270 megawatts of power for AI workloads, while Hut 8 secured $150 million in debt financing from Coatue to grow its AI data‑center assets. Bit Digital also revealed a contract to deliver 2,048 Nvidia GPUs to a client, financing part of the purchase by selling crypto. These moves illustrate a rapid pivot by mining firms toward the high‑energy AI market.

Background

Bitcoin mining operations in the United States own extensive data‑center infrastructure, fiber connectivity and large power contracts that are increasingly attractive to AI developers. The industry’s revenue fell sharply after the April 2026 halving, which cut block rewards in half and forced miners to look for alternative income sources. Analysts at JPMorgan Chase noted that operators are feeling a financial pinch and are exploring exit strategies. At the same time, the AI sector is experiencing a surge in demand for compute capacity, prompting providers to seek locations with reliable, cheap electricity. This convergence has spurred a wave of mergers, financings and partnership announcements as miners repurpose existing assets for AI workloads. Companies such as Core Scientific, Hut 8 and Bit Digital are leveraging their power‑rich sites to offer GPU‑as‑a‑service, sell compute capacity, or lease hardware, thereby diversifying revenue away from pure Bitcoin issuance. The broader market is also recognizing the scarcity of high‑quality power assets, a factor that is driving valuations and investment interest in mining‑derived data‑center capabilities.

What happened

Core Scientific announced on Tuesday that it will expand its deal with CoreWeave, delivering 70 megawatts of computing infrastructure initially and targeting a total of about 270 megawatts by the second half of 2025, with a possible additional 230 megawatts at other sites. The company said the expansion will add $1.2 billion in revenue over 12 years on top of an existing $3.5 billion arrangement, according to its press release. Earlier in the month CoreWeave had offered to acquire Core Scientific for $1.02 billion, a bid that Core Scientific rejected; the miner is currently valued at roughly $1.8 billion. Hut 8, a Miami‑based miner, raised $150 million in debt from private‑equity firm Coatue to fund AI‑related data‑center expansion. The financing was described as supporting the purchase of 1,000 Nvidia GPUs and a customer agreement with a venture‑backed AI cloud platform, with AI now accounting for 6 % of Hut 8’s sales. Hut 8’s CEO Asher Genoot said the firm finalized commercial agreements for a GPU‑as‑a‑service model that includes fixed infrastructure payments and revenue sharing. Bit Digital disclosed a contract to supply a client with 2,048 Nvidia GPUs over three years, doubling its existing processor inventory. To meet the contract, Bit Digital ordered 256 Dell servers for deployment at an Icelandic data centre and expects the deal to generate $92 million in annual revenue. The company will finance part of the purchase by selling crypto assets and entered a sale‑leaseback arrangement for half of the new GPUs to reduce capital outlay.

Market impact

The Core Scientific‑CoreWeave expansion is projected to generate $1.2 billion in additional revenue over 12 years, supplementing a $3.5 billion existing stream. Hut 8’s $150 million debt raise adds significant financing capacity for AI infrastructure, while its AI segment now contributes 6 % of total sales. Bit Digital expects $92 million of annual revenue from its GPU contract, and it will fund part of the purchase by liquidating crypto holdings. Collectively, these deals represent a shift of hundreds of megawatts of power and billions of dollars of revenue potential from Bitcoin mining to AI compute services, indicating a reallocation of capital within the broader tech‑energy ecosystem.

Why it matters

The announcements signal that bitcoin miners are actively repurposing their power‑intensive assets to serve the booming AI market, mitigating the revenue loss caused by the halving. By securing long‑term AI contracts and financing, firms like Core Scientific, Hut 8 and Bit Digital can stabilize cash flows and justify continued investment in high‑cost infrastructure. The moves also highlight the strategic importance of reliable, low‑cost electricity, a scarce resource that is becoming a competitive advantage for both mining and AI providers. As AI demand grows, the convergence of these two energy‑heavy sectors could reshape capital allocation, influence power‑grid planning, and create new revenue models such as GPU‑as‑a‑service and sale‑leaseback financing for hardware.