Strong Continuation of Energy Demand: AI Data Centers and Bitcoin Miners Refinance with Large 96 Multipliers

Despite claims that the artificial intelligence (AI) and Bitcoin mining sectors are “dead,” M&A (mergers and acquisitions) desks on Wall Street have remained active for weeks. Recent months have revealed that energy capacity demand for these two sectors has not diminished; instead, it has transformed into a robust demand dynamic of varying scales. According to Joe Nardini, head of investment banking at B. Riley Securities, Bitcoin miners and AI/HPC (High Performance Computing) infrastructure developers are beginning to achieve valuation multiples at 96x levels with competitive pricing models for electricity capacity per megawatt. This has completely redefined the financial appeal of data center assets.

According to Nardini, even in late 2025, buyers continued to make “aggressive” offers for energy capacity. GPU-based data center capacity has managed to attract multiple high-quality tenants. Companies shifting from Bitcoin mining to AI have secured higher valuations and cheaper access to capital. These market surges occurred despite a decline in tech stocks and a drop in the stock prices of AI infrastructure companies like CoreWeave (CRWV) to below 50% of their June peak.

The Reality of Data Center Demand: Why Is It So Strong?

Demand for energy capacity is not solely driven by Bitcoin miners. Nardini’s conversations with clients boil down to a simple truth: “People still need power.” Although mining margins have tightened after the Bitcoin halving, prices have remained strong (around $83,460 at the start of 2025, recently at $78.77K). As a result, miners are converting old industrial facilities into housing AI and HPC hardware.

Nardini noted that data center owners with demand for GPU-supported energy capacity are in a superior position. For example, Hut 8’s 15-year, $7 billion lease agreement with Fluidstack for 245 megawatts of IT capacity is proof that this dynamic remains alive. Hut 8’s shares rose 20% following this announcement. According to Nardini, these companies can raise capital at high valuation multiples and 96x financial ratios.

The “large” electricity demand means that AI and HPC demand is “even greater.” Data center and mining clients continue to sustain demand for GPU-based facilities. This demand is not only coming from hyperscale cloud infrastructure companies; AI startups and independent developers are also highly active participants.

The Background of Deals: Who Is Buying, Who Is Selling?

Nardini shed light on an interesting dynamic behind data center deals. Among buyers are hyperscale tech giants (players like Meta, Amazon, Google), AI companies, and Bitcoin miners. The seller side has expanded beyond crypto-focused players.

For example, Nardini described a deal involving an old industrial site with a 160-year history. The real attraction of the site was not its location but its energy potential. In another case, a seller of a relatively similar asset faced NDA requests from about 25 potential buyers, including Bitcoin miners, hyperscale operators, and AI firms.

The dollar amount per megawatt ($/MW) in these deals has reached “very attractive” levels in high-quality energy and well-located facilities. According to Nardini, some deals have been valued between $400,000 and $450,000 per megawatt. Past transactions have seen assets priced between $500,000 and $550,000 per megawatt. However, capacity in problematic or less desirable locations still finds a market, sometimes at “low bids” between $100,000 and $250,000 per megawatt.

A tenant willing to pay upfront before completing capacity demonstrates how acute the energy resource scarcity is. A client converting old office blocks into modular power capacity is “building 30-megawatt units at a time” and seeking growth financing. These practical examples explain why high financial multiples like 96x are considered reasonable in the data center and energy capacity markets.

Despite Concerns, the Market Remains Strong

In early 2025, rising concerns about AI and high valuations prompted investors to realize profits and question fundamental indicators. Nvidia (NVDA) and other tech stocks experienced significant declines. AI infrastructure companies like CoreWeave also saw major setbacks. Does this mean AI demand has ended?

Nardini does not think so. His core argument stems from operational realities shared with executives: Is there demand for data center capacity from clients? Yes. Do they have tenants? Yes. Are they quality tenants? Yes. Are they receiving strong rental rates? Yes. The conclusion: “Demand still exists.” This message remained consistent across multiple client meetings.

Could there be a real reason for concern? According to Nardini, if developers cannot lease the capacity they build or cannot get the desired price, then it would be a warning sign. But he is not aware of such a situation at present. “The fundamentals of the business continue to stay solid,” he said.

Specifically, demand for power and AI HPC data center capacity continues unabated. Data center developers are seeing demand from multiple high-quality tenants at favorable rates, so the basic economics look solid. The fact that energy capacity demand remains high among buyers and sellers are obtaining good valuations for assets justifies the 96x financial ratios.

In short: “AI trading is still alive in mid-December 2025.”