Bitcoin Miners Hold Key Energy Edge as AI Pivot Gains Momentum: Canaccord

October 28, 2025

Bitcoin mining continues to generate nearly all of the industry’s revenue even as attention increasingly turns toward artificial intelligence (AI), according to a new report from Canaccord Genuity.

Analysts led by Joseph Vafi said the shift toward AI integration makes strategic sense, as miners have already built extensive energy and data infrastructure for bitcoin operations — assets that can now support the next wave of AI data centers.

“The sector’s evolution is accelerating,” Canaccord noted, pointing to rising AI investment, more miner-AI partnerships, lower financing costs, and new corporate structures emerging across the space.

Despite the pivot narrative, bitcoin mining fundamentals remain robust, with prices hovering near record highs and production costs estimated between $30,000 and $40,000 per BTC. Enhanced efficiency gains, optimized power strategies—particularly in Texas—and hardware upgrades have kept leading miners both profitable and competitive, the report said.

Canaccord also highlighted how cheaper capital and investor interest are opening new revenue opportunities, ranging from GPU leasing to miners building proprietary AI cloud services.

Recent financing moves reflect this shift: Cipher Mining (CIFR) and IREN (IREN) each issued billion-dollar zero-coupon convertible bonds, while IREN and Hive Digital (HIVE) already operate GPU-based cloud platforms.

Meanwhile, Hut 8’s (HUT) decision to spin off American Bitcoin (ABTC) underscores a broader trend of separating mining and energy divisions to unlock additional value and focus growth, Canaccord added.