TLDR
- Matthew Sigel from VanEck highlights that Bitcoin miners already control power infrastructure AI data centers require years to develop
- Mining companies trade at significant discounts compared to data center operators when evaluated on market-cap-per-megawatt metrics
- MARA is transforming mining facilities into hyperscale data center campuses; Core Scientific obtained up to $1 billion from Morgan Stanley to support its AI transition
- Worldwide miner hash rate declined 6% from November 2025 highs, partially because hardware is being redirected toward AI computing
- CleanSpark stated that Bitcoin mining capital allocation appears less attractive at present hash prices when measured against AI revenue potential
Bitcoin mining operations have developed substantial power infrastructure over recent years, creating assets that AI companies urgently require. Matthew Sigel, VanEck’s head of digital asset research, believes markets have yet to properly value this strategic position.
Sigel shared these observations during an appearance on CNBC’s Squawk Box, describing miners as owners of valuable assets including land parcels, power purchase agreements, cooling infrastructure, and established utility relationships that would require substantial time for new entrants to replicate.
Connecting fresh data centers to electrical grids often means entering interconnection queues extending into 2028 and beyond. Mining operations bypassed these delays years ago.
Despite these advantages, Sigel noted that mining firms continue trading at substantial discounts relative to traditional data center companies when analyzed by market capitalization per megawatt. Markets may be overlooking the AI opportunity or remain skeptical about miners’ ability to complete the transition.
Operational data indicates execution is underway. Public mining companies are planning capacity expansion from 7 gigawatts currently to 20 gigawatts by 2027.
The Deals Are Already Being Done
This transformation extends beyond industry discussion. [[LINK_START_0]]MARA[[LINK_END_0]] announced an agreement in February to repurpose mining locations into hyperscale data center facilities. Core Scientific landed up to $1 billion in financing from Morgan Stanley last week to accelerate its AI infrastructure buildout.
CleanSpark communicated a clear position. During Q1 2026, the company indicated that allocating capital to Bitcoin mining appears unfavorable at prevailing hash prices relative to AI revenue opportunities.
This strategic shift appears in network statistics. Global miner hash rate fell 6% from November 2025 highs. This decline reflects hardware being reallocated from Bitcoin mining to AI computational tasks.
Network security remains intact for now, though continued monitoring proves prudent.
Meanwhile, Bitdeer continues expanding its mining footprint. The firm is installing 50,000 proprietary ASICs across 413 megawatts of capacity, potentially contributing 33 exahashes per second to network hash rate and generating $335 million in additional Bitcoin revenue at present price levels.
Grid Balancing Is Now a Sellable Service
Another opportunity exists beyond AI hosting. Miners possess the capability to reduce power consumption rapidly. As AI computing clusters and manufacturing reshoring strain domestic electrical grids, this operational flexibility creates marketable value.
Sigel characterized this as an effective load balancing mechanism. When grids face capacity constraints, mining operations can curtail activity. Power remains available for critical needs. Miners sacrifice some revenue, but this flexibility transforms into a compensated service.
AI data center electricity demand is projected to grow 24% annually through 2030, according to sector forecasts.
Q1 2026 earnings releases will provide the first comprehensive assessment of AI pivot progress. Analysts plan to scrutinize power capacity figures, AI service contracts, and curtailment revenue streams.
Core Scientific’s $1 billion financing arrangement with Morgan Stanley closed last week.
