Simply put
- Recent reports indicate that Google and Blackstone are collaborating on an AI cloud initiative, with Bernstein highlighting that the availability of power is a significant hurdle in developing AI infrastructure.
- Bitcoin miners control more than 27 gigawatts of planned power capacity and have secured over $90 billion in AI contracts, positioning themselves as important players in the AI sector.
- Many individual miners have formed substantial partnerships, often involving financial collaborations aimed at boosting their production capabilities.
As Google and Blackstone venture into a new AI cloud project, an unexpected group stands to gain: Bitcoin miners.
A Wall Street Journal report revealed that Google and Blackstone are planning to establish a joint AI cloud company utilizing Google’s custom chip technology. Blackstone is set to invest $5 billion and will retain a majority stake. This announcement led analysts to reassess who truly influences AI development, especially as power availability emerges as a more pressing concern than capital or chips.
Interestingly, a broad network of Bitcoin mining firms has quietly assembled over 27 gigawatts of planned power capacity across the U.S., according to Bernstein’s recent analysis.
This power capacity is increasingly seen as a critical resource in Silicon Valley’s race to create the next wave of AI data centers. Connecting just 1 gigawatt of power to the grid can take several years in many regions, creating bottlenecks that urge major cloud operators to seek alternatives beyond traditional data center developers.
In response, Bitcoin miners are positioning themselves as suppliers for AI infrastructure. Bernstein notes the industry has announced AI contracts worth over $90 billion, covering 3.7 gigawatts of capacity. About a third of these are tied to major hyperscalers, while the rest relate to neocloud deals with independent AI computing firms that both Google and Blackstone are engaging with.
A notable example is IREN, which recently partnered with Nvidia for a deal valued at $3.4 billion, inclusive of $2.1 billion in equity related to GPU deployments. Riot Platforms has its own AI colocation agreement with AMD, while Core Scientific and HUT 8 have unique agreements with key cloud clients.
This situation places miners in a strategically advantageous position. Whether older hyperscalers create their neocloud operations or continue to collaborate with independent providers, the underlying necessity for grid-connected and readily available power remains, and miners are currently well-equipped to meet this demand.
Bernstein has recently rated four Bitcoin mining companies favorably: IREN (with a price target of $100), Riot Platforms ($25), CleanSpark ($24), and Core Scientific ($24), while MARA Holdings is rated with a market performance target of $23.
