Bitcoin miners and AI companies compete for cheap renewable energy
Bitcoin mining companies and artificial intelligence data centers are increasingly competing for access to affordable and stable energy, which could lead to a resurgence of institutional investment in mining over the next decade.
AI data centers with significant financial resources are starting to bid higher for energy infrastructure, causing many Bitcoin (BTC) miners to be “price-deprived” or lose their mining priorities, according to a July 31 research report from Bitcoin mining infrastructure provider GoMining Institutional.
However, according to Jeremy Dreyer, managing director and chief business development officer at GoMining Institutional, the flexibility of Bitcoin miners allows them to expand into more remote areas that lack high-speed internet infrastructure, giving them a competitive advantage over AI companies.
This growing competition for energy will lead to a new wave of institutional investment in bitcoin mining over the next decade, Dreier noted on Cointelegraph's daily Chain Reaction X Spaces show on Thursday.
“In the next five to ten years, thanks to this new battle with AI, we will see a new boom in Bitcoin mining as real institutional capital flows into the space.”
Institutional money has already begun to flow into U.S. Bitcoin-based exchange-traded funds (ETFs), and Dreier called investing in mining the “next step” for these investors.
Bitcoin Miners and the Silent War on AI (featuring GoMining) #CHAINREACTION https://t.co/zLYMxLKZfR
— Cointelegraph (@Cointelegraph) August 13, 2025
Institutions Push for Cheaper 'Pure' Bitcoin
A logical next step could be to attract institutional investment into Bitcoin mining companies, as corporations investing in Bitcoin ETFs and treasury firms want to get cheaper Bitcoin for their holdings.
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According to Dreier, more institutions are considering purchasing cheaper, “clean” bitcoins rather than paying spot prices on exchanges. “[Institutions] are looking to get genuinely new, newly minted bitcoins at a price below the market price.”
Dreier told Cointelegraph that more and more organizations are turning to GoMining for bitcoin mining infrastructure services in an attempt to get more affordable bitcoin for their holdings.
Expected Cost of Bitcoin Mining. Source: TheMinerMag
According to a research report by TheMinerMag, the average cost of mining Bitcoin will be $64,000 in the first quarter of 2025 and is expected to exceed $70,000 by the end of the year. This is 70% lower than the current spot price of Bitcoin, which is over $119,050.
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Competition for electricity between miners and AI data centers has forced many Bitcoin mining companies to diversify their operations to benefit from this trend.
For example, Riot Platforms abandoned plans to expand its Bitcoin mining operations in Corsicana, Texas, to instead explore AI opportunities at the same location.
Iris Energy also announced a strategic shift toward its AI cloud business, placing a self-imposed cap on the expansion of its mining fleet, signaling a “major reprioritization,” according to a report from GoMining Institutional.
However, Dreyer predicts that many public miners “who have gone over to the AI side” will “quickly start to return to investing in Bitcoin mining” as they see institutional capital rotate out.
Others are betting on innovations in bitcoin mining. Bitcoin finance company Block Inc. has unveiled a new cryptocurrency mining system designed to extend the life of mining rigs and reduce operating costs, a potential boost for miners struggling to maintain their capacity, Cointelegraph reported Thursday.
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Source: cryptonews.net
