Investment Rating - The report suggests a positive outlook for companies transitioning to AI data centers, highlighting the potential for significant revenue growth in this sector [4]. Core Insights - The majority of cryptocurrency mining companies are transitioning to AI cloud services and data center operations due to increasing Bitcoin mining difficulty and rising electricity demand driven by AI [10][11]. - Many companies have secured substantial AI contracts and have clear plans for expanding their computing power, indicating a strong market opportunity [17][27]. Summary by Sections 1. Transition of Cryptocurrency Mining Companies - Cryptocurrency mining companies are beginning to pivot towards AI cloud services and data centers, driven by the need for updated mining equipment and the increasing demand for electricity [10][11]. - The U.S. Department of Energy projects a need for an additional 100GW of peak electricity supply by 2030, with 50GW directly for data centers, positioning mining companies favorably for this transition [10]. 2. Companies with AI Contracts and Expansion Plans - **Core Scientific**: Early mover in AI data center transition, signed a 12-year contract with CoreWeave for 590MW of HPC hosting, with a present value of approximately $37.2 billion to $50 billion [3][19]. - **TeraWulf**: Secured a 10-year data center lease with Core42 for 72.5MW, with potential revenue of $1.09 billion in the first year [27][28]. - **Iris Energy**: Plans to deploy 23,000 GPUs by Q1 2026, projecting an annual revenue run rate of approximately $500 million [34][40]. - **Hut 8**: Focused on power generation and AI, with a 5-year agreement for 310MW of power, expected to generate annual revenue of about $4.3 million [44][45]. - **WhiteFiber**: A subsidiary of Bit Digital, has contracts for over 4,998 GPUs, with an annual recurring revenue exceeding $9.14 million [47][48]. - **Hive Digital**: Balancing both Bitcoin mining and AI data center operations, with expected annual revenue from AI services of $100 million by 2026 [51]. - **Galaxy Digital**: Entered the AI data center space with a 15-year contract with CoreWeave, projected to generate over $1 billion in annual revenue [3][4]. - **Cipher Mining**: Partnered with Fluidstack for AI data center operations, with a contract value ranging from $1.5 million to $5.5 million [3][4]. 3. Investment Recommendations - The report recommends focusing on companies that are aggressively transitioning to AI data centers, have clear expansion plans, and are trading at a discount relative to their market value [4].