A burgeoning competition for affordable, eco-friendly energy is emerging between firms dedicated to Bitcoin mining and those operating sophisticated artificial intelligence (AI) data centers. Industry observers suggest this contest could spark a resurgence of institutional investment in the Bitcoin mining sector over the coming years.
GoMining Institutional, a company providing vital infrastructure for Bitcoin mining, highlighted in a research report dated July 31, that AI data centers, backed by substantial financial resources, are increasingly winning bids for crucial power resources. This trend is pushing some Bitcoin (BTC) miners out of the market or prompting them to scale back their mining endeavors.
However, Jeremy Dreier, Managing Director and Chief Business Development Officer at GoMining Institutional, noted that Bitcoin miners possess a unique advantage: their operational flexibility. This allows them to establish facilities in more remote, off-grid locations where high-speed internet is not readily available, a constraint that limits the options for AI data centers.
Dreier predicted that this intensifying competition for energy resources will stimulate a renewed wave of institutional investment in Bitcoin mining during the next decade. He made this assertion during his appearance on Cointelegraph’s Chain Reaction daily X spaces show on Thursday.
“Looking ahead five to ten years, the emerging competition with AI will drive a new golden age for Bitcoin mining, attracting significant institutional capital to the field.”
Dreier emphasized that institutional money has already found its way into US spot Bitcoin exchange-traded funds (ETFs), viewing investments in mining operations as the logical “next step.”
Institutions Seek Cost-Effective “Virgin” Bitcoin
Many analysts believe a move by institutional investors into Bitcoin mining companies represents a sensible progression. As corporations invest in Bitcoin ETFs and as treasury firms hold Bitcoin on their balance sheets, they seek more affordable avenues for acquiring Bitcoin.
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Dreier stated that institutions are increasingly investigating the possibility of acquiring “virgin” Bitcoin at a lower cost than purchasing it on exchanges. The goal is to obtain newly mined Bitcoin “cheaper than they can obtain it from the market.”
According to Dreier, GoMining is seeing a rise in institutional inquiries about its Bitcoin mining infrastructure services, all driven by the desire to accumulate Bitcoin for their holdings at a more favorable price.
Research from TheMinerMag indicates that the average cost to mine a Bitcoin during the first quarter of 2025 was $64,000 and is projected to exceed $70,000 by year’s end. Even at these levels, mining remains roughly 70% cheaper than the current market price of Bitcoin, which stands above $119,050.
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As miners and AI data centers vie for access to energy, many Bitcoin mining companies are adapting their strategies to capitalize on this trend.
For example, Riot Platforms has decided to reassess its Bitcoin mining expansion plans in Corsicana, Texas, with a view to pursuing potential AI opportunities at that location.
Iris Energy recently revealed a strategic shift toward its AI cloud business, imposing limits on its mining fleet’s growth, signaling a “significant change in priorities,” according to GoMining Institutional’s analysis.
Despite this trend, Dreier anticipates that a number of public mining companies that have “jumped on the AI bandwagon” will “quickly begin to shift back into investing more heavily in Bitcoin mining” as they observe the flow of institutional capital.
Others remain focused on advancing Bitcoin mining technology. Block Inc. unveiled a novel cryptocurrency mining system designed to extend the operating life of mining equipment and reduce operational expenses, potentially offering support to miners facing difficulties in sustaining their facilities. Cointelegraph reported this on Thursday.
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