bitcoin Mining still generates almost all of the sector’s revenue, even as attention is shifting to artificial intelligence (AI), broker Canaccord Genuity said in a report on Tuesday.
However, the pivot makes sense as miners have built a vast energy infrastructure for bitcoin that now positions them to power the next wave of AI data centers, said analysts at Canaccord, led by Joseph Vafi.
The evolution of the sector is accelerating, driven by increased investment in AI, more agreements between miners and AI, lower financing costs and new corporate structures. However, bitcoin mining fundamentals remain strong, with prices near all-time highs and costs ranging between $30,000 and $40,000 per coin, the analysts wrote.
Efficiency increases, better energy strategies (especially in Texas) and fleet upgrades have kept major miners profitable and dominant, according to the report.
Canaccord says cheaper capital and investor demand are opening up new avenues, from leasing GPUs to miners building their own AI clouds.
Cipher Mining (CIFR) and IREN (IREN) have recently issued zero-coupon convertible bonds worth billions of dollars, while IREN and Hive Digital (HIVE) already operate GPU cloud platforms.
Hut 8’s (HUT) spinoff from American Bitcoin (ABTC) underscores a broader shift toward separating mining and energy operations to unlock value and focus growth, the report added.
Read more: Bitcoin Mining Profitability Dropped More Than 7% in September: Jefferies
