Bitcoin mining revenue pressured the sector in late 2025, pushing major firms to diversify into high-performance computing for artificial intelligence. Companies like TeraWulf and Marathon Digital are leveraging their infrastructure for AI data centers, a strategic shift highlighted by investment firms that see significant valuation potential. However, this transition carries financial risk tied to the sustainability of the AI demand boom.
Bitcoin’s price retracement has increased stress on miners. The network’s electrical cost to mine has fallen from approximately $71,000 to around $53,500, as stated in a recent industry report.
This pressure is accelerating a strategic pivot toward AI infrastructure. Investment firm VanEck published a report arguing miners were missing a massive valuation arbitrage opportunity.
It projected annualized revenue of about $9.11 million per megawatt for AI/HPC. “If these miners can transition 20% of their installed capacity to AI/HPC infrastructure, they could easily double their market capitalization by 2028,” the firm noted.
The bond market shows the sector’s risk profile. Over the past year, $33 billion in long-term notes were issued by Bitcoin mining and AI infrastructure companies.
Rates ranged from 4% for established energy giants to 9.25% for firms like CoreWeave. This pricing reflects lenders viewing miners as growth credit.
TeraWulf demonstrated this shift in its Q4 2025 results, securing long-term AI leases. Meanwhile, its digital asset revenue fell quarter-over-quarter.
Marathon Digital outlined a strategic shift beyond Bitcoin mining during its earnings call. A joint venture with Starwood Digital Ventures targets converting powered sites to data centers.
The venture aims for over 1 gigawatt of near-term IT capacity. A pathway to more than 2.5 gigawatts is reportedly in place.
The sustainability of AI demand remains a key question for the sector. A drop-off could make the high debt burdensome for these transitioning firms.
