CoinShares: Data Center Ban Increases Value of Bitcoin Mining Companies' Power Assets

CoinShares' Managing Director for France, Benoît Pellevoizin, stated that the restrictions on new data center construction following the U.S. midterm elections could enhance the value of existing Bitcoin mining infrastructure, with companies that have paying AI tenants benefiting the most. Public concerns over electricity prices, water consumption, and the influence of large tech companies have increased resistance to new facilities, while existing mines face fewer obstacles due to already having power contracts and grid connections. According to CoinShares data, many projects have grid connection delays exceeding five years, with the average in the PJM region surpassing seven years. Fully leased AI data centers are valued at approximately $27 million per megawatt, while publicly listed mining companies with partially powered but unleased capacity are valued at less than $3 million per megawatt. The cost to convert to AI facilities ranges from $8 million to $15 million per megawatt. Mining companies with contracted AI capacity trade at an average of 12.9 times forward sales, while uncontracted miners only trade at 3.7 times.