February 3, 2026 02:00 PM GMT Powering AI The 100GW Opportunity Asia's demand for compute is rising and accelerating power infrastructure investments in the region. We estimate compute power demand to grow at a similar rate to the US, reaching over 100GW by 2030 and driving US$140bn of value creation among our Powering AI preferred picks. Power consumption is outpacing expectations as demand rises from AI to onshoring around the world and in Asia. We estimate compute power needs will grow at a 23% CAGR thro ...

Core Viewpoint - IREN Limited is positioned as a leader in the Bitcoin infrastructure sector, focusing on low-cost, renewable-powered Bitcoin mining and expanding into AI computing, while Hut 8 Corp. offers a diversified platform that includes mining, hosting, and digital infrastructure services [2][3]. Company Overview - IREN and Hut 8 provide leveraged exposure to Bitcoin through physical infrastructure, relying on power access, efficient data centers, and scalable computing capacity rather than merely holding Bitcoin [3]. - IREN has secured 3 gigawatts of power capacity in renewable-rich regions, enhancing cost control and scalability for Bitcoin mining [4]. - Hut 8's infrastructure model faces execution and valuation risks, with earnings closely tied to Bitcoin price fluctuations and power costs [9]. Growth Opportunities - IREN is shifting its focus towards AI computing, with plans to expand its GPU fleet from 23,000 to 140,000 units by the end of 2026, targeting a $3.4 billion annual recurring revenue (ARR) opportunity [5]. - Hut 8's substantial 8.65 GW development pipeline has yet to be monetized, limiting its market acceptance until implementation milestones are achieved [10][11]. Financial Performance - IREN's fiscal 2026 revenue is estimated to increase by 119.6%, with earnings projected at 64 cents per share, reflecting a significant turnaround from previous earnings of just 4 cents per share [7]. - Hut 8's consensus estimate for a 2026 loss is pegged at 90 cents per share, indicating a deterioration in profitability concerns [12]. Stock Performance and Valuation - IREN has outperformed Hut 8, with a stock increase of 335.5% compared to Hut 8's 113.5% gain over the past year, attributed to IREN's decisive execution in AI infrastructure [15]. - IREN's price/sales ratio stands at 7.3X, lower than Hut 8's 13.43X, indicating a more favorable valuation supported by strong revenue visibility and disciplined execution [17]. Conclusion - IREN is viewed as the more attractive investment due to its vertically integrated platform, visible AI-driven revenue pipeline, and stronger balance sheet, while Hut 8 faces challenges with uneven execution and widening losses [17][18].

Core Insights - HIVE Digital Technologies reported October 2025 Bitcoin production of 289 BTC, marking an 8% increase month-over-month and a 147% increase year-over-year [6][7] - The company has surpassed 24 EH/s of operational hashrate, supported by a total of 300 MW capacity in Paraguay, and is now positioned as one of the most efficient digital-asset operators globally [3][4] Production Highlights - Bitcoin production reached 289 BTC, with an average daily production of 9.3 BTC/day [6] - The operational hashrate averaged 21.9 EH/s, with a peak of 23.6 EH/s, reflecting a 13% growth from September [6][7] - Fleet efficiency was recorded at 17.7 J/TH, with production growth outpacing Bitcoin network difficulty [6][7] Expansion and Infrastructure Development - The Phase 3 Valenzuela expansion in Paraguay is complete, bringing the total capacity to 300 MW and operational hashrate to approximately 25 EH/s [4][5] - HIVE is transforming its Canadian operations from Tier I to Tier III+ AI and high-performance computing (HPC) data centers, with significant investments in infrastructure [8][10] - The Grand Falls campus in New Brunswick is being converted into a Tier III+ AI data center, designed to support up to 25,000 NVIDIA GPUs [9] Management Commentary - Management emphasizes that the growth in Bitcoin production is not only enhancing revenue but also funding the transformation of mining campuses into advanced AI infrastructure [11] - The dual focus on Bitcoin mining and AI computing is expected to deliver strong returns while preparing for future technological demands [11] Future Outlook - Each additional exahash is anticipated to increase daily Bitcoin production and revenue potential, with stable operating costs due to fixed-rate hydroelectric power [13] - HIVE aims to continue scaling its operations in both Bitcoin mining and AI computing, aligning with national innovation goals [10][11]

Core Insights - Europe's largest Bitcoin mining firm, Northern Data Group (NDG), is selling its mining division, Peak Mining, for up to $200 million, marking a significant shift towards artificial intelligence (AI) [1][6] - The sale includes $50 million in upfront cash and up to $150 million in deferred payments based on profit-sharing from its Texas mining site [2] - NDG plans to repurpose its existing mining infrastructure for AI workloads, which are expected to be more profitable than Bitcoin mining [2][4] Industry Trends - The pivot from Bitcoin mining to AI reflects a broader trend in the crypto industry, where miners are adapting to the increasing demand for AI computing as Bitcoin mining profitability declines due to rising energy costs and market conditions [3][6] - AI workloads can generate ten times more revenue per megawatt compared to Bitcoin mining, making this transition crucial for financial sustainability [4] Financial Performance - NDG's AI and cloud revenue tripled in 2024, surpassing €200 million, with expectations of an additional €150 million from AI services in early 2025 [5] - The company's previous strategic moves include selling Texas data centers for $651 million in 2022 and acquiring GPU specialist Decentric for $429 million, enhancing its capabilities for AI [4] Competitive Landscape - NDG is not alone in this transition; competitors like Core Scientific, Hut8, and Iris Energy are also converting their mining operations into AI hosting facilities, indicating a significant shift in the industry [7] - Core Scientific secured a $3.5 billion deal for AI infrastructure, highlighting the competitive nature of the AI market [7] Strategic Implications - The $200 million exit from Bitcoin mining is viewed as a strategic investment in the burgeoning AI sector, positioning NDG to capitalize on the anticipated trillion-dollar AI boom [8]

Group 1 - The core viewpoint is that the rising demand for electricity driven by AI is prompting large technology companies to explore new power sources and infrastructure, with companies like IREN repurposing bitcoin mining sites for high-performance computing [1][2]. - IREN's stock has surged over 500% due to its pivot from bitcoin mining to AI power solutions, indicating a lucrative shift in business strategy [1]. - The intense electricity demand from AI is leading hyperscalers to seek assistance from bitcoin miners, highlighting a significant trend in the industry [2]. Group 2 - Bitdeer has also experienced a surge due to the shift towards AI, indicating a broader trend among bitcoin miners capitalizing on AI-related contracts [4]. - IREN has closed a $1 billion offering, aiming to double its capacity, which reflects the growing investment in AI infrastructure [4]. - The stock market is experiencing volatility, with significant movements in major indexes, while certain stocks, including those related to AI and bitcoin mining, are showing resilience [4].

Core Insights - The Artificial Intelligence Infrastructure Partnership (AIP), led by BlackRock's GIP, is acquiring Aligned Data Centers for $40 billion to enhance AI capacity [1][2][4] - The acquisition is expected to create significant arbitrage opportunities for undervalued Bitcoin miners [1][4] Group 1: Acquisition Details - AIP's acquisition of Aligned Data Centers is valued at approximately $40 billion, marking a record-breaking deal [2] - The consortium includes major players like Nvidia, Microsoft, xAI, and MGX, indicating strong industry backing [2] - The deal will provide over 5 gigawatts of operational and planned capacity, essential for next-generation AI workloads [3] Group 2: Financial Implications - The acquisition translates to a cost of $8 million per megawatt for the consortium [5] - In contrast, publicly traded Bitcoin miners such as Riot Platforms, Hut 8, and IREN are valued at only $3 million per megawatt, highlighting a significant undervaluation [6] - This disparity suggests potential for Bitcoin miners to re-rate their stock as AI demand increases [1][6]