August 2026

From Hash Rate to Hyperscale

How Bitcoin Miners Are Becoming AI Infrastructure Companies

Bitcoin miners used to have one job: secure blockchains. Today, some are discovering a second business that may prove even more valuable: providing the power and infrastructure needed to support artificial intelligence.

The shift makes sense. Bitcoin mining facilities already possess many of the assets AI developers need most: large power allocations, high-capacity electrical infrastructure, industrial-scale cooling systems, and campuses capable of supporting thousands of GPUs. As demand for AI computing continues to surge, those existing assets have become increasingly valuable.

TeraWulf recently announced a 20-year, approximately $19 billion AI data center lease with Anthropic covering more than 400 megawatts at its Kentucky campus, with phased delivery beginning in late 2027.^[1] Riot Platforms, Cipher Mining and other public miners have also announced partnerships with hyperscalers and AI infrastructure providers, transforming businesses that once depended almost entirely on cryptocurrency mining into diversified providers of digital infrastructure.

Riot has reported roughly $33 million in quarterly data-center revenue tied to a partnership with chipmaker AMD, with contracted capacity already expanded to 50 megawatts. This is notable because Riot has done this while still holding onto nearly $1.2 billion worth of Bitcoin, rather than selling its treasury to fund the pivot.^[2]

Cipher, meanwhile, has rebranded itself as Cipher Digital and now controls roughly 700 megawatts of contracted HPC* capacity, anchored by a multi-year lease with Fluidstack/Google and a 15-year deal with Amazon Web Services targeted to go live around October 2026.^[3] Both stocks have rallied sharply this year even as Bitcoin itself has struggled.

This a reminder that the market is increasingly pricing these companies on megawatts and contracted revenue, not just coins mined. Zoom out, and it’s an industry-wide shift: public miners have announced an estimated $70 billion in cumulative AI and HPC contracts, with some expected to derive up to 70% of revenue from AI by year-end.^[4]

For equity investors, these announcements may represent an exciting new story. For credit investors, they raise a different question: which companies have the balance sheet, financing and contractual visibility to successfully execute that transformation?

That’s where the Digital Asset Debt Strategy ETF (DADS) enters the picture.

Rather than pursuing mining stocks because of the headlines, DADS seeks exposure to the debt issued by many of the companies financing this transition. As of July 23, 2026, the portfolio includes convertible and senior notes from issuers such as Core Scientific, Riot Platforms, TeraWulf, Applied Digital, CleanSpark, Hive Digital and Bit Digital, making Mining & Data Center one of the portfolio’s largest represented sleeves.^[5]

The distinction may matter. While equity investors often focus on the headline value of an AI contract, credit investors tend to ask different questions. Who is funding the expansion? How durable are the customer relationships? Does the transaction strengthen liquidity? What is the issuer’s position within the capital structure? Those answers often matter just as much as the growth story itself.

Applied Digital provides a good example. The company’s transformation has been supported by a roughly $5 billion AI infrastructure partnership with Macquarie Asset Management, which management has highlighted as a significant source of liquidity for future development.⁴ For a credit investor, that’s more than an interesting headline, it is an important indicator of financial flexibility. DADS’s active management process is built around evaluating precisely these types of structural characteristics, including coupon, seniority, maturity profile, liquidity, and counterparty strength, rather than simply following equity market enthusiasm.

As digital asset companies increasingly diversify into providers of AI infrastructure, the opportunity set for credit investors may continue to evolve alongside them. Rather than chasing the next equity story, DADS seeks to identify compelling debt opportunities through active credit research across a diversified portfolio of issuers, sectors, and capital structures.

Holdings subject to change. To view current holdings, click here.

*Hash rate measures how many cryptographic calculations (called hashes) a mining machine or an entire network can perform every second.

Sources

24/7 Wall St. “TeraWulf Drops 8% Even as Analysts Raise Price Targets on $19B Anthropic Deal, IREN Falls 7%, Applied Digital Slides 6%.” July 7, 2026.
The Block. “Bitcoin Miner-to-AI Boom Sends Stocks Soaring as Cipher and Hut 8 Hit Fresh Highs.” May 30, 2026.
Coin Insider. “Bitcoin Miners Are Becoming AI Infrastructure Companies. Here’s What’s Driving It.” Accessed July 10, 2026.
Insights4VC. “Bitcoin Mining’s AI Pivot: 2026 Thesis Update.” Substack, February 25, 2026.
AlphaBit Investments. “Home | DADS ETF, Digital Asset Debt Strategy.” Digital Asset Debt Strategy ETF, accessed July 10, 2026.

The Fund does not invest directly in digital assets; however, it will be subject to the risks associated with digital assets by virtue of this investment. The fund is subject to significant risks that are not typically present in other investments, including possible loss of principal.

Investors should consider the investment objectives, risks, charges and expenses carefully before investing. For a prospectus or summary prospectus with this and other information about the Fund, please call 866-379-6199 or visit our website at www.DADSETF.com. Read the prospectus or summary prospectus carefully before investing.

As used herein, Digital Asset Debt Securities, or DAD Securities, means debt securities of issuers that are directly involved in digital asset-related activities, such as mining digital assets, holding digital assets in their corporate treasury or government treasury, and/or working on platforms to facilitate payment with, or the transfer of, digital assets.

Bitcoin & Digital Assets Risk. While the Fund will not directly invest in digital assets, it will be subject to the risks associated with bitcoin by virtue of its investments in DAD Securities that hold bitcoin or other digital assets. Investing in digital assets exposes investors to significant risks that are not typically present in other investments. These risks include the uncertainty surrounding new technology, limited evaluation due to bitcoin’s short trading history, and the potential decline in adoption and value over the long term. The extreme volatility of the price of bitcoin and other digital assets is also a risk factor.

Fixed Income Securities Risk. The prices of fixed income securities respond to economic developments, particularly interest rate changes, as well as to changes in an issuer’s credit rating or market perceptions about the creditworthiness of an issuer. In general, the market price of fixed income securities with longer maturities will increase or decrease more in response to changes in interest rates than shorter-term securities. Changes in government intervention may have adverse effects on investments, volatility, and illiquidity in debt markets. These changes could cause the Fund’s net asset value to fluctuate or make it more difficult for the Fund to accurately value its securities.

Derivatives Risk. Derivatives are financial instruments, such as futures contracts, options and swaps, that derive value from the underlying reference asset or assets, such as stocks, bonds, or funds (including ETFs), interest rates or indexes. The Fund’s investments in derivatives may pose risks in addition to, and greater than, those associated with directly investing in securities or other ordinary investments, including risk related to the market, imperfect correlation with underlying investments or the Fund’s other portfolio holdings, higher price volatility, lack of availability, counterparty risk, liquidity, valuation, and legal restrictions. The use of derivatives is a highly specialized activity that involves investment techniques and risks different from those associated with ordinary portfolio securities transactions. The use of derivatives may result in larger losses or smaller gains than directly investing in securities. When the Fund uses derivatives, there may be imperfect correlation between the value of the underlying instrument and the derivative, which may prevent the Fund from achieving its investment objective.

Convertible Securities Risk. The Fund will invest in convertible securities of companies which are preferred stocks or bonds that pay a fixed dividend or interest payment and are convertible into common stock or other equity interests at a specified price or conversion ratio during a specified period. Convertible securities generally have less potential for gain than common stocks. Also, convertible bonds generally pay less income than non-convertible bonds. Convertible securities tend to provide higher yields than common stocks. However, a higher yield may not protect investors against the risk of loss or adequately mitigate any loss associated with a decline in the price of a convertible security.

Digital Asset Treasury Companies Risk. Issuers whose business is holding bitcoin or other digital assets in their corporate treasury face unique risks as a result of holding digital assets in their corporate treasury. The speculative perception of digital assets may overshadow the fundamentals of such companies, leading to exaggerated price movements based on hype or fear. The value of the Fund’s investments in instruments that provide exposure to bitcoin corporate treasury companies – and therefore the value of an investment in the Fund – could decline significantly and without warning. If you are not prepared to accept significant and unexpected changes in the value of the Fund, you should not invest in the Fund.

Foreign and Emerging Markets Risks. Investments in foreign securities may involve risks such as social and political instability, market illiquidity, exchange-rate fluctuations, a high level of volatility and limited regulation. Investing in emerging markets involves different and greater risks, as these countries are substantially smaller, less liquid, and more volatile than securities markets in more developed markets.

Liquidity. The Fund may lose money or be prevented from earning capital gains if it cannot sell security at the time and price that is most beneficial to the Fund.

High Yield Bonds. High-yield bonds have a higher risk of default or other adverse credit events but have the potential to pay higher earnings over investment grade bonds. The higher risk of default, or the inability of the creditor to repay its debt, is the primary reason for the higher interest rates on high-yield bonds. Examples of other adverse credit events are interest rate risk (when interest rates rise, bond prices fall) and economic risk (the risk associated with downturns in the economy).

Credit Risk. A bond’s credit rating reflects the issuer’s ability to make timely payments of interest or principal—the lower the rating, the higher the risk of default. If the issuer’s financial strength deteriorates, the issuer’s rating may be lowered, and the bond’s value may decline.

Municipal Securities Risk. Funds that invest in municipal obligations of issuers will be affected by economic, political, or other events affecting municipal issuers, which may affect the Fund’s ability to acquire and dispose of municipal obligations at desirable yield and price levels.

Other Investment Companies Risk. The Fund will incur higher and duplicative expenses when it invests in ETFs and other investment companies. By investing in another investment company, the Fund becomes a shareholder of that investment company and bears its proportionate share of the fees and expenses of the other investment company. There is also the risk that the Fund may suffer losses due to the investment practices of the underlying funds as the Fund will be subject to substantially the same risks as those associated with the direct ownership of securities held by such investment companies. ETFs may be less liquid than other investments, and thus their share values are more volatile than the values of the investments they hold.

Mid/Small Capitalization. Investments made in small and mid-capitalization companies may be more volatile and less liquid than large company stocks due to limited resources or product lines and greater sensitivity to adverse economic conditions.

New Fund Risk. The Fund is a recently organized, giving prospective investors a limited track record on which to base their investment decision.

New Sub-Adviser Risk. Although the Sub-Adviser’s principals and the Fund’s portfolio managers have experience managing investments in the past, the Sub-Adviser has no experience managing investments for an ETF, which may limit the Sub-Adviser’s effectiveness.

Distributed by Foreside Fund Services, LLC.