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
@core42_ai @fluidstackio @Google $WULF
with @PaulBPrager @SullyCNBC @CNBC @PowerLunch pic.twitter.com/9dyZNGUFTh
— TeraWulf (@TeraWulfInc) September 3, 2025
The limited supply of electricity and data centers positions crypto miners to sign more deals like this one in the future.
However, the biggest opportunity for Bitcoin miners sitting on AI infrastructure may not even be the big tech companies that dominate the headlines.
Holmes believes militaries and governments will become large AI data center customers due to innovations on the battlefield.
Drones, autonomous robots, and autonomous vehicles are some of the advanced tech that use AI data centers as their backbone.
“More money is going to AI. If you are going to have all of these drones, you’re going to need data centers and satellites. The intersection is going to be sovereign data centers,” Holmes told BeInCrypto.
Bitcoin Miners Remain Undervalued Compared To Data Center Stocks
Although Bitcoin miners are key players in the AI data center boom, not many investors recognize this opportunity.
The opportunity is still in its early innings, especially when you look at the valuations of Bitcoin miners compared to conventional data center stocks.
“When we look at the typical data center ETF that’s out there, you’ll see that it’s trading at 20 times EBITDA, but Bitcoin miners like Hive are trading at less than 2 times EBITDA,” Holmes told BeInCrypto. “I think you are going to see this re-rating, and you saw Core Scientific get [acquired] at 14 times because CoreWeave was trading at 40 times EBITDA. We are going to see re-ratings, but in five years, I believe our data centers are going to become very valuable assets.”
CoreWeave started as a crypto mining company called Atlantic Crypto in 2017. It now has a valuation that’s hovering at around $50 billion ever since it fully embraced AI data centers.
With plenty of capital flowing into the industry, valuations and financial growth rates can move quickly.
Unlike the dotcom bubble, which was filled with eyeballs but no cash flow, AI is already producing tangible results in record-breaking time.
CoreWeave Stock Price Chart. Source: Google Finance
Holmes mentioned that OpenAI went from making $0 to $1 billion in monthly revenue in less than two years.
Hive stock has more than doubled from its 2025 lows, but it’s not the only crypto mining stock to perform well. IREN has more than doubled year-to-date, while Cipher Mining has more than tripled from its 2025 lows.
All three stocks enjoyed strong rallies in the back half of August, and if Bitcoin mining experts like Holmes are correct about how it plays out over the next few years, those big gains may just be the beginning.
The post Why Bitcoin Miners Are Sitting On A Generational AI Goldmine appeared first on BeInCrypto.
