Bitcoin miners to derive 70% of revenue from AI by end of 2026

Bureaucracy surrounding the expansion of data centers in the US is unexpectedly working in favour of Bitcoin miners. Because new data centers wait an average of five years for a grid connection, existing sites with power supply are especially valuable. Miners already have that infrastructure and can deploy their capacity for AI without regulatory hurdles. According to CoinShares, the share of AI revenue in the listed mining sector will therefore rise from around 30% to an estimated 70% by the end of 2026, possibly even higher.

In short:

• CoinShares expects AI revenue from listed Bitcoin miners to rise to 70% of their total revenue by the end of 2026.
• Capacity shortages and bureaucracy in the US make existing, connected data centers highly valuable, from which miners benefit.
• Digital investment products saw $1.65 billion in inflows in the first three trading days of the week to 27 August.

Data centers full, queue reaches 2,060 gigawatts

Vacancy rates at American data centers have fallen from 10% in 2019 to around 1% now, a level that has persisted for three years. Moratoriums and restrictions on new development are breaking records, while the capacity waiting for a grid connection has risen to about 2,060 gigawatts. For comparison: the total installed generation capacity of the US is about 1,300 gigawatts, meaning the queue represents roughly 1.6 times the entire existing electricity output.

In that context, sites that are already connected to the grid are considerably more valuable. Bitcoin miners own exactly that infrastructure and do not need to overcome regulatory hurdles to shift capacity from mining to AI applications. CoinShares sees this as the main explanation for the sharp increase in AI-related revenue within the sector.

Strong inflows into crypto investment products

In addition to developments in the mining sector, CoinShares also reports strong capital flows towards digital investment products. In the first three trading days of the week through 27 August, $1.65 billion flowed in globally, following an inflow of $2.94 billion in the full week through 20 August, the largest weekly inflow of the year so far.

Bitcoin attracted the most with $976 million, followed by Ethereum with $478 million. Altcoins also participated: XRP raised $80.5 million, Solana $62.9 million and Hyperliquid $39 million. The US accounted for the largest share with $1.5 billion; Germany and Switzerland also showed significant inflows. Earlier, we reported on BlackRock’s dominant role in inflows into Bitcoin and Ethereum ETFs.

Total assets under management in crypto ETPs now stand at around $155 billion. Year-to-date inflows have thus returned to positive territory, at $3.4 billion. Bitcoin closed around $78.500 on 26 August, after briefly rising above $81.000 the day before. In doing so, Bitcoin regained its 200-day moving average for the first time in 270 trading days.

Fed caught between inflation and weaker consumer

CoinShares places the strong inflows into crypto products in a broader macroeconomic context. According to the company, the US Federal Reserve faces a difficult trade-off: core inflation (core-PCE) rose by 0.2% month-on-month and 3.3% year-on-year in July, while the headline PCE figure came in at 3.7%, slightly above expectations. That leaves little room for interest rate cuts.

At the same time, the economy is visibly weakening. Consumer confidence fell to 89.4 in August, the lowest in seven months, and new home sales contracted by 10.5% in July. CoinShares states that this is not classic stagflation, but it is a combination that leaves the Fed little room for manoeuvre. That uncertainty appears to be pushing investors towards digital assets, the company concludes.