Bitcoin mining companies are looking to convert their power sites into data centers for artificial intelligence. This transformation would require nearly $50 billion in the short term, while lenders impose increasingly variable financing conditions.
In brief
- Bitcoin mining companies are turning to AI to diversify their revenues and add value to their electricity infrastructure.
- This reconversion requires nearly $50 billion in the short term, with sometimes high financing costs.
- Loans and convertible bonds expose companies to increased debt and shareholder dilution.
- Despite more than $100 billion in AI contracts announced, revenues remain limited and delivery delays are weakening projects.
AI contracts are not enough to finance infrastructure
Mining companies have an advantage sought by technology companies: land already connected to the electricity grid and capable of accommodating significant energy consumption. They can therefore offer their capabilities to artificial intelligence and high-performance computing operators.
However, this reconversion is not limited to the replacement of mining machines with graphics processors. AI data centers require more resilient buildings, advanced cooling systems, fast connectivity, redundant power, and constant uptime.
A typical mining site costs between $700,000 and $1 million per megawatt. AI infrastructure with liquid cooling can cost between $8 million and $15 million per megawatt.
BlocksBridge Consulting explain :
Large lenders have become more selective about data center loans.
The firm specifies that their decisions now depend on the client, the signed contract and the company’s ability to complete the project.
Even a multibillion-dollar commercial commitment therefore does not guarantee that the mining company has the capital necessary to build the promised data center.
Bitcoin mining: IREN pays between 6% and 9% to finance its projects
IREN illustrated the differences that may appear between two financing transactions concluded by the same company. In June, the group secured $3.65 billion to finance graphics processors, with an average interest rate of 6%.
Two months later, IREN signed another financing of $2.4 billion at a fixed rate of 9%. The two operations cover different projects and cannot be compared directly. The discrepancy nevertheless shows that lenders assess the risk of each infrastructure separately.
IREN would still have the largest funding gap among listed mining companies engaged in AI. An estimate released in June put its unmet needs at $21.1 billion. Riot Platforms followed with 7.2 billion, ahead of HIVE Digital with 4.6 billion.
In total, listed companies in the sector would need around $50 billion in the short term to carry out their announced projects. Their longer-term needs could approach 221 billion.
This debt adds to a balance sheet already weakened by the decline in mining profitability. At the peak of the bitcoin market in October 2025, the debt of listed mining companies had increased by around 500% compared to the second quarter of 2024.
Financing can also dilute shareholders
Interest is not the only cost borne by businesses. Some partners request potential actions in exchange for their financial guarantee.
In a deal involving Cipher Digital, Google agreed to guarantee up to $1.4 billion in lease liabilities. In return, the technology group received warrants likely to represent 5.4% of Cipher’s capital, subject to certain adjustments.
If these securities are exercised, existing shareholders will see their participation diminish. This mechanism allows Cipher to access more favorable financing, but transfers a portion of the future value to the guarantor.
Mining companies also use convertible bonds, which can be converted into shares. These instruments sometimes reduce immediate interest, at the cost of further potential dilution.
The risk increases if construction sites fall behind schedule. The company must then continue to pay its interest before receiving the expected income from its customers. A large contract can thus become a source of financial tension when capacity is not delivered on time.
More than 100 billion contracts, but little real income
The groups studied have announced more than $100 billion in contracts related to AI and high-performance computing. Yet these commitments currently produce only about $1.1 billion in annualized revenue.
Nearly 4 gigawatts of capacity have been contracted, but only 550 megawatts actually generate billings. Companies have only delivered around 25% of the capacities already leased.
The gap also appears in spending. Nine miners invested $5.11 billion in the first half of 2026, compared to just $341.2 million in revenue directly attributed to AI and high-performance computing. The ratio between investments and revenue thus reaches fifteen to one.
AI can offer more consistent income than bitcoin mining, subject to BTC price, network difficulty and electricity cost. But this stability will only exist after the delivery of the data centers.
The transition therefore creates a new risk profile. Mining companies are becoming heavily indebted infrastructure operators, whose success depends less on their bitcoin reserves than on their ability to build on time and control costs.
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