Bitcoin mining companies and artificial intelligence data centers are increasingly competing for access to cheap and sustainable energy, and could renew institutional investment in the mining sector over the next decade.
According to a July 31 research report from Bitcoin mining infrastructure provider Gomining Institution, AI data centers with deep capital reserves are beginning to outperform power infrastructure miners.
However, according to Jeremy Dreier, Managing Director and Chief Business Development Director at Gomining Institutional, the flexibility of Bitcoin mining companies allows them to gain an advantage over AI facilities and expand to more grid locations.
This growing battle for energy will lead to a new wave of institutional investments in Bitcoin mining over the next decade, said Dreier at Cointelegraph’s Chain Reaction Daily X Space Show on Thursday.
“In the next five to ten years, we will be seeing a new heyday of Bitcoin mining due to this new battle with AI, because actual institutional capital is in the space.”
Institutional Capital has already flowed into the US Spot Bitcoin Exchange-Traded Funds (ETFS), with Dreier calling mining investment the “next step” for these investors.
The hidden war between Bitcoin Miner and AI (feat. Gomining) #chainReaction https://t.co/zlymxlkzfr
– Cointelegraph (@cointelegraph) August 13, 2025
Institutions want cheaper “virgin” bitcoin
Institutional capital rotation into Bitcoin mining companies could be the next logical step as companies and finance companies investing in Bitcoin ETFs are trying to acquire cheap Bitcoin for their balance sheets.
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More institutions are investigating the possibility of getting cheaper “virgin” Bitcoin instead of paying spot prices in exchange, Dreyer said. “The (facility) wants to get a true, new, newly created Bitcoin, cheaper than it gets from the market.”
Drier told CointeLegraph, increasing numbers of agencies are asking about Bitcoin mining infrastructure services from Gomming to get cheap Bitcoin for its balance sheet.
The implicit cost of Bitcoin production. Source: Theminermag
Bitcoin mining averaged $64,000 in the first quarter of 2025, and is expected to exceed $70,000 by the end of the year, according to a research report from Theminermag.
Related: Bitmine is a huge target that will earn 24.5b as Sharplink boosts Ether War Chest
The battle for power between miners and AI data centers has diversified operations to benefit from this trend.
For example, Riot Platforms has halted plans to expand its Bitcoin mining operations in Corsicana, Texas, and instead explore AI opportunities on the same site.
Iris Energy has announced a strategic pivot for the AI cloud business, and according to a report from Gomining Institutional, it has self-imposed caps on the expansion of its mining fleet, indicating a “major re-shuffle of priorities.”
But Dreyer foreshadowed many public miners who “leapt into the AI bandwagon,” and “starts quickly back to investing in Bitcoin mining.”
Others are doubling the innovations in Bitcoin mining. With a focus on Bitcoin, Fintech Company Block Inc. has introduced a new cryptocurrency mining system designed to increase the lifespan of mining rigs and reduce operational costs, flashing potential boosts for miners struggling to maintain their facilities.
https://www.youtube.com/watch?v=20zfedqdkl8
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