Bitcoin Miners Strike Gold with AI Deals from Microsoft and Amazon

Bitcoin miners are discovering artificial intelligence (AI) as a new business opportunity. IREN, for example, secured a deal with Microsoft worth $9.7 billion. In return, IREN will provide computing power for AI.

As early as late summer, initial reports began circulating: Bitcoin miners could profitably lease their data centers to large companies urgently seeking to expand their capacity for artificial intelligence (AI) services. Now, concrete deals are being made public. For example, the publicly traded Bitcoin miner IREN announced in a press release that it has signed a five-year contract with Microsoft worth $9.7 billion.

To this end, IREN has committed to expanding its capacity by at least 200 megawatts and acquiring new high-performance NVIDIA chips worth $5.8 billion. Back in April, IREN had already announced that it would temporarily halt the expansion of its Bitcoin mining business and focus on preparing its existing computer parks for use as AI data centers.

This news has been well received on the stock market: In April, IREN shares were trading at around $5, while they currently stand at $66. Analysts at Bernstein have now raised their price target for IREN to $125, and Cantor Fitzgerald even considers $142 realistic.

Bitcoin Miner Cipher signs AI contract with Amazon

IREN had expected to generate around $500 million in revenue from Bitcoin mining this year. The AI ​​deal with Microsoft is expected to bring IREN up to $2 billion annually. Bitcoin miner Cipher is also shifting its focus from BTC to AI.

This is evidenced by a 15-year contract with Amazon, worth $5.5 billion, which Cipher Mining presented with its quarterly results . Cipher’s stock has climbed from just under $3 in April to its current price of $22.

Conclusion: Bitcoin miners discover AI services as a goldmine

Bitcoin mining as a sole business is significantly dependent on BTC price fluctuations, and global competition is fierce. Therefore, champagne corks are likely popping at IREN, Cipher, and other Bitcoin miners. Through long-term agreements with Microsoft, OpenAI, Amazon, and other major corporations, Bitcoin miners secure stable revenues by providing AI resources.

Since Bitcoin miners often already have their own power plants and invest in high-performance computers, interfaces to AI services are already in place and can be expanded relatively easily. As a result, Bitcoin miners with AI contracts are experiencing unprecedented price surges on the stock market.

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(Featured image by Michael Förtsch via Unsplash)

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