Hive Digital chairman Frank Holmes says Bitcoin miners moving into high-performance computing are entering a capital-intensive race, where demand is being driven not only by hyperscale cloud providers but also by governments and global militaries.
As miners increasingly pivot toward artificial intelligence and HPC, many expect their primary competition to be technology giants such as Amazon, Google, and Microsoft. According to Holmes, executive chairman of HIVE Digital Technologies, the reality is far more complex—and significantly more expensive.
Holmes said the shift from Bitcoin mining to HPC infrastructure is not incremental but transformational. Hardware costs alone represent a major hurdle, and the addition of advanced Nvidia chips dramatically widens the investment gap.
“Nvidia chips can add another $25 million to the cost,” Holmes said, citing University of Cambridge estimates that suggest cutting-edge HPC facilities can cost more than 30 times as much as traditional Bitcoin mining operations.
Operational demands also rise sharply. Unlike mining facilities, HPC data centers require multiple redundant internet connections, backup fuel systems, advanced cooling technologies, and far more sophisticated power management.
“When you get an ASIC from Bitmain, it takes about six hours to unwrap it, plug it in, and start generating cash flow,” Holmes said. “With Nvidia H200s, it can take six weeks—because you’re building a brain.”
Holmes emphasized that partnerships with hyperscalers are essential for credibility and revenue access as miners expand into AI computing. He pointed to industry examples such as Core Scientific’s partnership with CoreWeave, while other miners pursue relationships with Microsoft, Amazon, or Oracle.
“For Bitcoin miners, onboarding with hyperscalers is critical,” Holmes said. “CoreWeave is considered the fastest to work with, while Oracle has been the most flexible.” Microsoft, he added, is widely seen as the most difficult partner to engage.
Beyond the private sector, Holmes noted that rising global military spending is accelerating demand for advanced computing infrastructure. Technologies such as autonomous drones and robotics require enormous data-processing capacity, further driving the need for data centers.
Governments, he said, are increasingly seeking long-term contracts, helping fuel sustained expansion across the sector.
Despite periodic market corrections, Holmes remains optimistic about the long-term outlook. He described the convergence of Bitcoin infrastructure, AI computing, and global digital demand as part of a broader secular trend.
“Buy the dips and hold on,” Holmes said. “This isn’t just about Bitcoin mining—it’s the entire AI and technology sector, and it’s in a secular super cycle.”
Source : thestreet
