Crypto miners leveraging energy infrastructure and data centers to capture AI compute demand, offering 15-35% cost advantages over cloud providers through sub-4¢/kWh power contracts.As Bitcoin mining profitability fluctuates, forward-looking operators are repurposing their energy-optimized infrastructure to address the $50B AI compute shortage. This pivot creates a new valuation framework where miners transform into essential AI infrastructure providers, combining crypto's energy innovation with machine learning's explosive growth.ContextThe 2022 mining crisis forced operators to optimize energy costs below 4¢/kWh. Simultaneously, AI's compute demand grew 10x annually, creating shortages. Historical parallels include oil rig operators transitioning to offshore wind (2014-2017) and Equinix's telecom-to-cloud pivot (2007-2012).Strategy ExplanationMiners convert mining facilities to GPU clusters using existing power purchase agreements (PPAs), undercutting cloud providers' energy costs. Bitfarms' $300M expansion with Macquarie financing demonstrates capital redeployment from volatile mining to recurring AI revenue streams.Token Targets- Core Holdings (50%): BITF, HUT, IREN

- AI Infrastructure (30%): NVIDIA GPU partnerships, modular data center ETFs

- Optionality (20%): AKT (decentralized compute), RNDR (GPU pooling)Expected Returns & Risks3-5x ROI potential in 18-36 months for early adopters. Key risks include cloud provider price wars and execution delays. Mitigate through PPA-focused operators and Bitcoin futures hedging (20% allocation).Exit SignalsExit when sector reaches $15B market cap or energy costs exceed 6¢/kWh. Monitor AI revenue contribution - below 25% by 2026 indicates strategy failure. https://redrobot.online/2025/05/investment-idea-miner-to-ai-compute-migration/