In the volatile world of cryptocurrency, where fortunes can flip faster than a Bitcoin halving, survival demands reinvention. Enter the latest plot twist: Bitcoin mining giants, once laser-focused on churning out digital gold through energy-guzzling ASIC rigs, are now pivoting hard into the sizzling realm of AI cloud computing. It’s not just a side hustle—it’s a full-throated transformation, turning dusty data centers into sleek hubs for artificial intelligence training, high-performance computing (HPC), and cloud services that power everything from ChatGPT queries to biotech breakthroughs.
Why now? The crypto winter of 2022 left scars, with bankruptcies and slashed margins forcing miners to rethink their playbooks. Fast-forward to 2025, and AI’s insatiable hunger for compute power—fueled by Nvidia’s GPU boom and hyperscalers like OpenAI scrambling for capacity—has created a perfect storm. Bitcoin miners, armed with cheap energy contracts, robust cooling systems, and sprawling facilities in power-rich spots like Texas and Quebec, are uniquely positioned to cash in. According to Galaxy Research, this convergence could unlock billions in AI infrastructure investments, with miners’ data centers offering up to 25 times more revenue per kilowatt-hour than traditional mining.
But this isn’t about ditching Bitcoin entirely; it’s about diversification with a green twist. These “hybrid” operations blend crypto’s unpredictability with AI’s steady contracts, appealing to ESG-savvy investors betting on sustainable tech plays. At Positive Stocks, we’re bullish on this pivot—it’s a high-growth narrative where energy efficiency meets exponential demand. Let’s dive into three standout companies leading the charge: Core Scientific, Hut 8, and Iris Energy. These aren’t your average miners; they’re becoming the backbone of tomorrow’s cloud economy.
Core Scientific: The AI Pioneer That’s Already Cashing In
If any miner was built for this shift, it’s Core Scientific. The Texas-based powerhouse, once the largest Bitcoin miner in North America, filed for Chapter 11 in 2022 amid the FTX fallout but emerged leaner and meaner in 2024. By 2025, it’s not just surviving—it’s thriving as an AI infrastructure kingpin.
Core’s secret sauce? A head start in GPUs. Back in Ethereum’s proof-of-work days, the company hosted massive GPU clusters for mining, giving it the chops to pivot seamlessly when AI exploded. Today, it’s inking blockbuster deals: A $3.5 billion partnership with CoreWeave (an AI cloud specialist) to host GPU clusters at its Denton, Texas facility, plus expansions worth $1.2 billion in Georgia. These aren’t pie-in-the-sky plans; they’re live, powering AI training for hyperscalers and generating over 20% of Core’s Q1 2025 revenue from HPC alone.
RelatedPosts
What makes Core a stock picker’s dream? Predictable cash flows from long-term AI leases—think five-year contracts with OpenAI-level clients—offset crypto’s volatility. With 1.3 GW of developed power capacity and plans to scale to 2.5 GW by 2027, Core’s market cap has surged 150% year-to-date. Analysts at H.C. Wainwright peg it as a “buy” at $15, citing its edge in retrofitting facilities for liquid-cooled GPU racks. For ESG investors, Core’s focus on renewable energy (over 70% of its power is hydro and solar) aligns perfectly with sustainable cloud mandates.
“Core Scientific isn’t just hosting GPUs; it’s building ‘AI factories’ that turn stranded energy into scalable compute,” says Russell Cann, Core’s Chief Development Officer. The result? A hybrid model where Bitcoin mining funds AI expansions, creating a resilient revenue moat.
Hut 8: From Crypto Solo to Cloud Symphony
Hut 8, the Canadian-American miner with a flair for the dramatic, kicked off its pivot in early 2022—pre-ChatGPT hype, no less. What started as a bet on high-performance computing has ballooned into a full-fledged AI cloud arm, blending Bitcoin’s hash power with enterprise-grade data services.
The numbers tell the tale: Hut 8’s HPC division raked in $162 million in 2024 revenue, a 69% jump from the prior year, thanks to deals like a $460 million AI hosting contract with Applied Digital. Its five data centers and two cloud regions now support everything from AI model training to biotech simulations, powered by Nvidia H100 GPUs. In Quebec, a $30 million investment in H200 clusters is set to go live Q1 2026, projecting $35 million in annual AI revenue.
Hut 8’s edge lies in its “business symbiosis” model, partnering with cloud providers like AWS for hybrid setups. This isn’t a blind leap; it’s calculated diversification. As Bitcoin’s post-halving economics squeeze margins, AI’s uncorrelated revenue—up to 3.5x the capacity of traditional data centers at lower EV multiples—provides stability. Stock watchers note Hut 8’s 6-12x EV/EBITDA valuation versus 20-25x for pure-play data firms like Digital Realty, signaling undervaluation with upside.
For investors, Hut 8 screams growth: Analysts forecast 40% YoY revenue expansion through 2027, driven by AI’s projected $40 trillion ESG-aligned market. “We’re not abandoning mining; we’re amplifying it with cloud intelligence,” quips CEO Asher Genoot. With facilities in energy havens like Medicine Hat, Alberta (stranded gas-powered), Hut 8 is a poster child for sustainable pivots—reducing flaring while fueling AI’s green revolution.
Iris Energy: The Renewable Rebel Going All-In on AI
Down under and stateside, Iris Energy is the eco-warrior of the bunch, boasting 100% renewable energy across its 510 MW of operating capacity. Founded in 2018, this Australian-listed miner (NASDAQ: IREN) has always punched above its weight, but its 2025 AI pivot is a game-changer.
Iris is retrofitting its British Columbia and Texas sites into GPU-optimized data centers, targeting 2,160 Nvidia H100s by year-end. A landmark deal with a major cloud provider (rumored to be Microsoft) anchors 200 MW for AI workloads, with expansions eyeing 1 GW by 2028. This isn’t incremental; it’s exponential, with AI projected to contribute 60% of revenue by 2026.
Why Iris shines for Positive Stocks readers? Its renewables focus dodges the energy backlash plaguing traditional miners, aligning with IRA tax credits and state incentives in Texas and Georgia. The company’s modular designs—containerized data centers using immersion cooling—allow quick swaps from ASICs to GPUs, minimizing downtime. Market reaction? Shares up 120% YTD, trading at a forward P/E of 18x amid analyst “strong buy” consensus.
“Iris isn’t just mining Bitcoin; we’re mining the future of compute,” says CEO Daniel Roberts. With low-latency fiber upgrades and SOC 2 compliance, Iris is courting enterprise clients beyond AI, like edge computing for 5G. For ESG portfolios, it’s a no-brainer: Zero-carbon ops powering the AI boom without the guilt.
The Bigger Picture: Why This Pivot Powers Your Portfolio
This isn’t a fad—it’s structural. As Galaxy Research highlights, Bitcoin miners control 3.5x the potential MW capacity of top data operators at a fraction of the valuation, yet AI demand could triple U.S. storage by 2030. Challenges? Sure—GPUs cost a fortune (tens of thousands each), and retrofits demand expertise in redundancy and latency that not all miners have. But winners like Core, Hut 8, and Iris are ahead, blending crypto’s grit with cloud’s polish.
For investors, the thesis is clear: Bet on hybrids. These stocks offer crypto’s upside with AI’s stability, all wrapped in ESG appeal. As Bitcoin eyes $100K and AI infra hits escape velocity, companies bridging the two could deliver 2-3x returns by 2027. At Positive Stocks, we’re tracking these pivots closely—diversify your digital assets, and watch the compound interest of innovation.
Positive Phil is a podcaster, sustainability advocate, and contributor to PositiveStocks.com. Views are for informational purposes only; always DYOR.
Sources: Insights drawn from CoinDesk, Galaxy Research, TIME, and company filings. Follow PositiveStocks.com for more on sustainable investing and green tech trends.
