TLDR
- VanEck’s Matthew Sigel highlights that cryptocurrency miners control essential power infrastructure that AI data center operators are struggling to develop over multi-year timelines
- Mining companies show significant valuation discounts versus traditional data center operators when comparing market capitalization to megawatt capacity
- MARA transitions mining facilities into hyperscale data center operations; Core Scientific obtains up to $1 billion Morgan Stanley backing for AI infrastructure transformation
- Worldwide mining hash rate declined 6% since November 2025 peak, partially attributed to hardware reallocation toward AI computing tasks
- CleanSpark indicates Bitcoin mining capital allocation appears unfavorable at present hash price levels when weighed against AI infrastructure returns
Cryptocurrency mining operations have accumulated valuable power infrastructure over recent years that artificial intelligence companies are now competing to access. According to Matthew Sigel, VanEck’s head of digital asset research, financial markets have yet to recognize this strategic positioning.
🔥 JUST IN: $181 billion asset manager VanEck’s Matthew Sigel tells CNBC that about a dozen countries are currently mining Bitcoin at the government level, adding that he expects the trend to expand. pic.twitter.com/Cn3ywOlIH8
— Crypto Briefing (@Crypto_Briefing) March 11, 2026
During an appearance on CNBC’s Squawk Box, Sigel characterized miners as “sitting on a gold mine” due to their existing ownership of essential assets including real estate, electricity contracts, thermal management systems, and established utility relationships that new facilities require multiple years to establish.
Connecting new data center facilities to electrical grids often involves navigating interconnection waiting lists extending into 2028 and later years. Mining companies have already secured these critical connections.
LATEST: 📈 Bitcoin miners trade at a deep discount to data centers despite pivoting to power AI infrastructure, with their stocks poised for more gains, VanEck’s Matthew Sigel told CNBC. pic.twitter.com/f4OQAOTAXP
— CoinMarketCap (@CoinMarketCap) March 11, 2026
Notwithstanding these competitive advantages, Sigel noted that mining enterprises continue trading at substantial discounts relative to conventional data center companies when evaluated on a market capitalization per megawatt metric. Markets appear either unaware of the AI infrastructure opportunity or skeptical regarding miners’ ability to successfully transition their business models.
Available data indicates the transformation is progressing. Publicly-traded mining companies project capacity expansion from 7 gigawatts currently to 20 gigawatts by 2027.
The Deals Are Already Being Done
This strategic shift extends beyond mere discussion. MARA announced an agreement in February for converting existing mining locations into hyperscale data center facilities. Core Scientific obtained up to $1 billion in capital from Morgan Stanley during the previous week to support its AI infrastructure development.
CleanSpark provided blunt assessment. During Q1 2026, the company stated that Bitcoin mining capital deployment appears economically irrational at prevailing hash price levels compared with AI infrastructure opportunities.
Hash rate statistics reflect this operational transition. Global mining hash rate has decreased 6% from November 2025 highs. This reduction partially stems from mining equipment being reassigned to AI computational workloads instead of Bitcoin validation.
Network security remains uncompromised currently, though continued monitoring proves prudent.
Conversely, Bitdeer continues expanding mining capacity. The organization is installing 50,000 proprietary ASIC processors across 413 megawatts, potentially contributing 33 exahashes per second to network capacity and generating $335 million additional Bitcoin revenue at current market rates.
Grid Balancing Is Now a Sellable Service
An additional revenue opportunity exists beyond AI hosting services. Mining operations possess the capability to reduce power consumption immediately upon request. As AI computing clusters and industrial manufacturing reshoring initiatives increase domestic electrical grid strain, this operational flexibility provides genuine value.
Sigel characterized this capability as a practical load balancing mechanism. During peak grid demand periods, miners can suspend operations. Power outages are prevented. Miners sacrifice modest revenue, but this flexibility now represents a monetizable service offering.
AI data center electricity demand is projected to increase 24% annually through 2030, according to industry analysis.
Q1 2026 financial reports will provide the initial comprehensive assessment of AI transition progress. Analysts are focused on power capacity metrics, AI contract disclosures, and curtailment service revenue.
Core Scientific’s $1 billion Morgan Stanley financing was finalized during the previous week.
