Bitcoin BTC$115,111.97 mining still generates nearly all of the sector’s revenue even as the focus is shifting to artificial intelligence (AI), broker Canaccord Genuity said in a report on Tuesday.
However, the pivot makes sense as miners built out vast energy infrastructure for bitcoin that now positions them to power the next wave of AI data centers, said Canaccord’s analysts, led by Joseph Vafi.
Sector evolution is accelerating, driven by rising AI investment, more miner-AI deals, lower financing costs, and new corporate structures. However, bitcoin mining fundamentals remain strong, with prices near record highs and costs ranging from $30,000 to $40,000 per coin, the analysts wrote.
Efficiency gains, improved power strategies—especially in Texas—and fleet upgrades have kept leading miners profitable and dominant, the report said.
Canaccord says cheaper capital and investor demand are opening new paths, from GPU leasing to miners building their own AI clouds.
Cipher Mining (CIFR) and IREN (IREN) have recently issued billion-dollar zero-coupon convertible bonds, while IREN and Hive Digital (HIVE) already operate GPU cloud platforms.
Hut 8’s (HUT) spinout of 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 Declined More Than 7% in September: Jefferies
