Why Bitcoin Miners Are Sitting On A Generational AI Goldmine

Bitcoin produced generational returns for investors who got into the digital asset a decade ago, and it looks like Bitcoin miners are next. 

The infrastructure Bitcoin mining companies use to mine Bitcoin is uniquely positioned to capitalize on artificial intelligence. 

Investors Are Starting To View Bitcoin Miners As AI Companies

Hive Digital Technologies Executive Chairman and Co-founder Frank Holmes told BeInCrypto that it takes three years to build a data center from scratch. That’s because you have to factor in details like permitting, logistics, and building the data center. 

However, the path to converting a Bitcoin mining data center into an AI data center takes less time.

“If you already have the infrastructure built from Bitcoin mining, it’s nine months to improve the data center,” Holmes said. 

Hive has a market cap of more than $600 million. But the company doesn’t view itself just as a Bitcoin miner. The company is a vertically integrated, renewable-powered AI infrastructure company, and Wall Street analysts agree. 

Analysts have aggressive price targets of $6 to $12. Hive stock currently trades at around $3 per share, which implies more than 300% upside from current levels.

HIVE Digital Six-Month Stock Price Chart. Source: Google Finance

Some institutional investors are starting to notice as well. 

Citadel Securities recently disclosed a 5.4% stake in Hive, and with Hive recently setting up its headquarters in the United States, it will be another year before the stock is eligible for the Russell 2000. 

Holmes mentioned that retail investors have fueled much of the initial momentum for Hive stock. 

These types of stocks tend to achieve big gains once institutional investors get involved, and investing in indices like the Russell 2000 attracts more capital from those investors.

Investing in Bitcoin miners has become a popular trend for large investors. Shark Tank’s famous investor, Mr. Wonderful’ Kevin O’Leary, also invested in Bitcoin mining and power infrastructure company Bitzero.

In an exclusive podcast with BeInCrypto, O’Leary explained his strategy. 

“If I had to start investing in gold 300 years ago, I would have invested in gold, gold miners, companies that made jeans, picks, and shovels. And I would have done much better than just owning gold. So the reason I own Bitzero is they mine Bitcoin and they’re actually a power company,” he told BeInCrypto.

The AI Opportunity For Bitcoin Miners

Most investors know about the opportunity in artificial intelligence, but not as many know how big it can become. 

Big tech companies are the big leaders, and a single contract with one of these companies can send a Bitcoin miner soaring. 

For instance, TeraWulf stock soared by almost 60% in a single day after landing a $3.2 billion deal with Alphabet. Shortly after the deal was announced, Alphabet upped its stake in TeraWulf.

TeraWulf is building out one of the largest data center campuses in the United States, backed by some of the most respected names in technology