Bitcoin and AI: The Energy Race and Bitzero Holdings' Leading Position
In 2017, analysts calculated how much oil would be needed to mine a single Bitcoin. The answer at that time was approximately 20 barrels of oil equivalent per coin. Today, that figure has risen to nearly 500 barrels. The current Bitcoin network consumes approximately 138-175 terawatt-hours annually, depending on which model you trust. Divided evenly among the roughly 164,000 coins created annually since the most recent halving, this equates to about 500 barrels of oil equivalent at current prices per Bitcoin, and exceeds 600 according to higher estimates.
However, Bitcoin is merely the opening act. The real energy story is about artificial intelligence (AI). According to the International Energy Agency (IEA), data centers consumed about 415 terawatt-hours from the global electricity grid in 2024. Running through the same conversion, that's approximately 670,000 barrels of oil equivalent per day, just to keep servers running. By 2030, the agency projects this figure will more than double to 945 terawatt-hours, equivalent to about 1.5 million barrels of oil equivalent daily - that's the daily output of a medium-sized oil producer, being burned to train models and answer questions.
And the electrical grid isn't ready for that. This is precisely why "Mr. Wonderful" from Shark Tank is backing Bitcoin with a major twist: using money from Bitcoin mining to build low-carbon energy facilities for AI data centers. Kevin O'Leary, known for advocating capital discipline in energy-intensive businesses, has invested in Bitzero Holdings Inc (NASDAQ: AIBZ).
"If I want exposure to crypto, I only need three positions now. I own Bitzero because they mine Bitcoin and they are actually an energy company," O'Leary stated.
Bitzero: From Bitcoin to AI Infrastructure
Years before AI sparked a global race for energy capacity, Bitzero Holdings was using cash flow from Bitcoin mining to secure large amounts of cheap electricity in Norway, Finland, and the United States. On May 5, O'Leary's expectations became reality when Bitzero announced an agreement with OneQode Networks for the entire power generation capacity from its Norway facility, marking Bitzero's entry into the large-scale AI data center infrastructure market.
"We're not moving into data centers - we are the backbone," said Bitzero CEO Mohammed Bakhashwain.
Energy Demand Comparison: Bitcoin vs AI
| Component | Energy Demand (terawatt-hours/year) | Oil Equivalent (barrels/day) | 2030 Forecast |
|---|---|---|---|
| Bitcoin Network | 138-175 | ~1,370 | Increases after halving |
| AI Data Centers (2024) | 415 | ~670,000 | 945 TWh |
| AI Data Centers (2030) | - | ~1,500,000 | 945 TWh |
AI Infrastructure: The Global Energy Scramble
AI companies are now fighting over the same thing that oil companies have warred over - access to secure energy. JLL estimates global data center capacity will nearly double by 2030, requiring nearly 100 gigawatts of new supply and up to $3 trillion in combined infrastructure and GPU costs. The IEA projects global data center electricity demand could surge to 945 terawatt-hours by the end of the decade.
However, electricity supply isn't growing at the same pace as data center plans, let alone AI demand. Wait times for grid connections in major markets have stretched beyond four years. Transformer shortages are worsening. Transmission bottlenecks are emerging on major data center routes. Utilities are increasingly struggling to accommodate hyperscale AI campuses requiring hundreds of megawatts each.
In the race for data center energy, Bitzero has secured over a gigawatt of electricity in Norway, Finland, and North Dakota. That's why O'Leary calls Bitzero an "energy real estate company." And all of that has suddenly made Norway one of the world's most strategically important markets for AI infrastructure.
Norway and Finland: The New Heart of Digital Infrastructure
Norway and Finland, home to massive hydroelectric and nuclear power plants, have become new gravitational centers for digital infrastructure. Hydroelectric plants that once exported excess energy southward are now powering mining clusters north of Trondheim and near Pori, where ambient air cools thousands of ASICs without mechanical cooling.
Securing a crypto mining facility capable of generating electricity here has clear advantages: industrial electricity under 5 cents per kWh, grid stability far exceeding U.S. volatility, and the halo reputation of producing each coin on 100% renewable energy.
The same megawatt powering Bitcoin is increasingly being allocated to AI computing and high-performance data centers, a collision of the two most energy-intensive industries on the planet. As hyperscalers scramble for clean capacity, the line between crypto mining and AI infrastructure is blurring.
Bitzero: Mining for AI Gold
Founded in 2021, Bitzero has quietly built one of the most scalable clean energy portfolios in the digital infrastructure space. The company now owns over 1 gigawatt of capacity spread across four strategic locations in Norway, Finland, and North Dakota.
The company's typical hydroelectric operation in Namsskogan, Norway, has produced 40 MW of self-mining capacity with costs under $0.05 per kilowatt-hour, among the lowest of any industrial miner globally.
Energy Cost Comparison Among Miners
| Company | Electricity Cost (USD/kWh) | Cost per Bitcoin (USD) | Advantage |
|---|---|---|---|
| Bitzero | 4.3 | ~50,000 | Infrastructure owner |
| Riot Platforms | 7-10 | ~70,000+ | Large scale |
| Marathon Digital | 7-10 | ~70,000+ | Large scale |
| Global Average | ~8.5 | ~65,000 | - |
The economics are brutal. According to CEO Mohammed Bakhashwain, every million dollars of capital deployed by Bitzero into its Norway grid and equipment generates approximately $700,000 in annual net profit. This efficiency comes from vertical integration - the company owns high-voltage connections and operates as a licensed grid operator at 132 kV, eliminating intermediary grid fees that most competitors still pay.
The OneQode Deal: A Strategic Turning Point
Bitzero's expansion goes far beyond typical crypto startups. The letter of intent signed on May 5 with OneQode Networks encompasses the entire 110 MW capacity of the Namsskogan, Norway data center site under a 15-year lease related to GPU-based AI workloads. The deal carries an implied value of approximately $2.6 billion over the lease term, and marks Bitzero's official entry into the large-scale AI data center infrastructure market.
For Bitzero, the deal means the company will generate revenue by leasing capacity and site infrastructure to OneQode. But simultaneously, OneQode pays the electricity bills related to operating the AI systems inside the facility. This means Bitzero holds recurring infrastructure revenue from the site without directly absorbing the massive energy costs associated with running large-scale AI workloads.
OneQode Deal Financial Data
| Parameter | Value | Details |
|---|---|---|
| Leased Capacity | 110 MW | Entire Namsskogan site |
| Lease Term | 15 years | GPU-based AI workloads |
| Rental Rate | ~$135/kW/month | 3% annual increase |
| Potential Revenue | ~$176-178 million/year | At full capacity |
| Estimated NOI | ~$151 million/year | 85% margin |
| Implied Value | ~$2.6 billion | Over lease term |
The Norway site, built on a former United Nations air force base connected to offshore grid power, was purpose-built for AI computing customers. Located near Atlantic cable stations, the site is an hour from Kristiansand and 90 minutes from Stavanger. This means accessible labor force but far enough to avoid urban restrictions. With offshore expansion already funded, the project could become one of Northern Europe's largest clean data campuses.
Future Vision and Competitive Advantage
With a lease deal in the pipeline, Bitzero is also targeting its Finland location, where the company has secured a one-gigawatt campus - nearly one million square meters of industrial land directly connected to nuclear and hydroelectric sources, capable of hosting both Bitcoin mining clusters and AI computing.
In North Dakota, the company owns a 225,000-square-foot complex on 184 acres, backed by letters of intent for 300 MW of phased delivery. Collectively, these assets represent what most miners lack - energy sovereignty. Bitzero doesn't just lease capacity - they build and own the infrastructure underneath it. This makes their cost curve largely immune to grid congestion, penalty curtailments, or political shifts.
The Bitcoin economics today favor miners who control their energy destiny. At current hash rates, every percentage point shaved from energy costs directly translates to margin expansion. According to the company, Bitzero's current cost per Bitcoin is near $50,000, dropping below $40,000 when new hardware is fully deployed. That's less than half the global average.
Companies like Nvidia (NASDAQ: NVDA), Amazon (NASDAQ: AMZN), and Meta Platforms (NASDAQ: META) are driving a wave of hundreds of billions of dollars in AI infrastructure investment, but every new training cluster, inference engine, and hyperscale data center ultimately depends on one thing - access to reliable electricity. As the industry realizes that electricity is becoming as crucial as advanced semiconductors, owning low-cost, scalable energy infrastructure is emerging as one of the most valuable assets in the digital economy.
Conclusion: The Future of Clean Energy
For the first time, the energy powering Bitcoin creation is beginning to reflect the future, not the past. Now, we're talking about hydroelectric rivers instead of oil fields, baseload nuclear instead of diesel generators, and operators who think more like energy developers than amateur miners.
Bitzero's NASDAQ: AIBZ portfolio demonstrates that evolution - a gigawatt of clean capacity positioned where climate, grid, and economics converge. And energy is the real commodity here. Bitcoin's proof-of-work is essentially an electron auction. Every miner is an energy trader disguised as a technologist.
In that race, Bitzero's 4-cent electricity and gigawatt runways represent not just cost advantages - they represent survival advantages. The company's assets sit at the intersection of Bitcoin's historic energy challenges and the world's new digital demands. If the last decade of Bitcoin was powered by oil, the next decade will be powered by hydro, wind, and nuclear, and it's being built in Norway.