JP Morgan analysts say the combined market capitalization of the 13 largest U.S.-listed Bitcoin miners climbed to a record high of $39 billion in August as several firms move beyond pure mining into high-performance computing (HPC) for AI workloads.
The bank’s coverage includes publicly traded miners such as Hut 8, Core Scientific, TeraWulf, IREN and Riot. According to the analysts, the valuation surge comes amid pressure on core mining economics: the Bitcoin block reward fell to 3.125 BTC after last year’s halving, network hashrate has hit record highs, and miners face rising operating costs.
To shore up revenue, some companies are converting or planning to convert parts of their infrastructure for non-mining uses. Hut 8 recently announced plans to develop 1.53 gigawatts of new capacity across four U.S. sites that can power non-mining operations, while other operators are marketing high-density power and space to AI and HPC customers.
Industry sources warn the pivot is not trivial: AI data centers demand different cooling and ventilation systems than Bitcoin farms, and retooling can be costly and complex. Hive Digital Technologies says its “dual business model” aims to capture revenue from both Bitcoin production and growing demand for compute. By contrast, Compass Mining urges caution, saying it will keep core focus on competitive mining infrastructure while preserving the option to repurpose assets if HPC demand materializes.
Why readers should care: the shift highlights how miners are adapting to slimmer block rewards and higher network difficulty by monetizing power and space in new ways—an industry evolution that could alter capital allocation and operational risk across mining firms.
Market snapshot: CoinGecko listed Bitcoin around $111,285, down more than 10% from a recent all-time high of $124,285.
Risk note: Converting mining facilities for HPC requires significant capital and carries execution risk; investors should weigh volatility in Bitcoin prices, network difficulty, and uncertain demand for AI compute.
Source: Decrypt. Read the original coverage for full details.