VanEck Says Bitcoin Miners With AI Pivot Are Deeply Undervalued
VanEck calls the drop in Hut 8 and Core Scientific a dislocation: the market is pricing power capacity and AI data center infrastructure too low.
Key Takeaways
- VanEck says bitcoin miners with an AI pivot were valued about 35% lower on average after the October sell-off, and sees that as a dislocation.
- According to VanEck, the sell-off hit the entire AI infrastructure sector, including GPU lessors like CoreWeave, amid concerns about credit and higher financing costs.
- VanEck says power capacity remains the main bottleneck, while no signed lease contracts have been canceled.
VanEck says shares of bitcoin miners that have shifted to AI data center infrastructure look oversold after the October sell-off. The asset manager calls the average 35% drop a dislocation, not a rejection of the business model.
Sell-Off Hit the Whole Sector
According to VanEck, companies across very different parts of the AI infrastructure space were lumped together in October. The market sold off not just miners focused on AI, but also GPU lessors like CoreWeave, as concerns about credit and higher financing costs grew.
The analyst points out that bitcoin miners like Hut 8 and Core Scientific, which VanEck describes as powered shell providers, are actually benefiting from existing power and cooling capacity. Those companies provide power to parties that rent GPUs for AI applications, and VanEck says that is a major part of the value.
Power Is Still the Bottleneck
VanEck says the biggest limit is not demand for AI, but available power capacity. That fits a broader trend: more and more bitcoin miners are using their existing infrastructure for AI and high-performance computing, because that setup can make better use of their power and cooling systems. Bitcoin's hashrate also shows that the sector is still running strong despite that shift.
The asset manager also says no signed lease contracts have been canceled, despite the higher debt load at GPU lessors. So according to the company, the physical bottleneck is still access to power, not a lack of customers.
Why This Matters
For European crypto readers, this matters because it shows how closely bitcoin mining and AI infrastructure are now tied together. The valuation of these companies no longer depends only on Bitcoin, but also on power access, data center capacity, and financing for AI hardware. That makes the sector more sensitive to broader market stress, but also to the scarcity of grid connections that VanEck mentions.