Bitcoin mining companies rush to AI: escaping the crypto cycle, only to enter new turbulence

Bitcoin miners pivoting to AI data centers are discovering that the new business is at least as volatile as crypto, with the WGMI index—holding names like CoreWeave, Nebius, Corz and CleanSpark—up 72% in 2025 but down 23% year-to-date amid a widening AI selloff. Keel (formerly Bitfarms) CEO Ben Gagnon said the shift was meant to escape crypto's cycles but has proven more turbulent, and Keel has halted all U.S. bitcoin mining without yet signing a data center customer, expecting revenue from three sites next year. CoreWeave, the Ethereum-mining-turned-AI flagship backed by Nvidia, has seen its shares fall 25% this year with stocks and bonds selling off together, while Elon Musk warned that debt markets are closing on the 200-plus neoclouds lacking stable non-AI revenue. Needham's John Todaro estimates listed miners sold 48,900 BTC in the first half—a half-year record—and expects continued reserve drawdowns through early 2027 as AI project financing tightens. CleanSpark is taking a hybrid approach, holding over $1 billion in bitcoin as a capital reserve while using mining to secure large power allocations, with its shares down 19% this year.