A Worthy Business: Why AI Trading Continues Amid Bubble Concerns

The cryptocurrency and artificial intelligence industries are cautious, but the business behind this buzz is moving forward steadily. Amid doubts about the AI bubble, consumers and sellers are conducting the largest transactions on Wall Street for one simple reason: everyone still needs electricity.

According to JOE Nardini, head of investment banking at B. Riley Securities, the demand for energy from Bitcoin miners and AI developers remains unmatched. “M&A activity continues because people still need electricity,” he said in an interview. His message is clear: the data center business is deeper and more resilient than surface-level concerns.

The Unrelenting Need for Power Creates a Worthy Opportunity

While Nvidia (NVDA) stock and other AI beneficiaries declined in early 2025 due to overvaluation concerns, the real-world operations tell a different story. The demand for GPU-capable data center capacity continues to rise, especially from high-credit, high-paying tenants.

According to Nardini, data centers with multiple GPUs attract qualified clients at attractive rates. Bitcoin miners shifting toward high-performance computing (HPC) are experiencing higher valuations and easier access to capital. This strategic shift has led to very high prices for some Bitcoin mining stocks this year.

The Hut 8 case is a perfect example of this phenomenon. The company recently saw its stock rise up to 20% after signing a 15-year, $7 billion lease agreement with Fluidstack for 245 megawatts of IT capacity at the River Bend campus. Even amid the market selloff, this deal demonstrated that serious buyers are willing to pay a premium for quality assets.

Inside These Deals: The Future of Megawatt Pricing

Valuations per megawatt have become key to understanding why these businesses remain worthwhile and attractive. In high-quality power and prime locations, some processes exceed $400,000 per megawatt, with potential to reach $450,000 depending on business conditions.

Nardini has seen deals fetching up to $500,000 to $550,000 per megawatt—a reliable and consistent pricing floor for premium assets. This reflects the intensity of demand and buyers’ willingness to pay for infrastructure that can generate immediate returns.

However, assets in more distressed or lower-priority locations reflect lower valuations, only reaching $100,000–$250,000 per megawatt. These bids come from buyers interested in power but less particular about market dynamics or location quality.

Qualified Buyers and Sellers in the New Ecosystem

The pool of buyers and sellers is expanding beyond the traditional cryptocurrency sector. Buyers include hyperscalers (large tech companies), AI firms, and Bitcoin miners. Sellers include old industrial facilities and even former office buildings being repurposed for power capacity.

In one case, a private seller of a similar asset received interest from about 25 prospective buyers—including Bitcoin miners, hyperscalers, and AI developers—who submitted NDAs. This level of competition creates a strategic decision point for asset owners: sell to a hyperscaler developer or become a developer themselves.

Nardini has observed industrial companies with old idle facilities and power capacity seriously considering selling into the AI/HPC and Bitcoin ecosystems. In another example, a client is converting old office blocks into modular power capacity units, “building 30-megawatt units at a time,” and is now seeking additional funding for expansion. The level of qualified interest is clear: in a single deal, one tenant is willing to pay rent in advance, demonstrating how scarce desirable capacity has become.

2026 and Beyond: The Foundation Remains Strong

The outlook for 2026 remains positive. If interest rates fall, the setup could lead to a “risk-on environment” that improves dealmaking. But this is not just speculation—the fundamentals support ongoing activity.

His logic is simple: is there still demand from clients? Yes. Do they have tenants? Yes. Are those tenants qualified? Yes. Are they getting good rates? Yes. The consistent yes to all these questions explains why the transaction pipeline remains full.

The reality is that buyers continue to be open to purchasing, and sellers see real value in their assets. This is a market heavily grounded in fundamentals that is unlikely to lose momentum in the short term.

Nardini’s long-term conclusion is straightforward: “The demand for electricity and AI HPC data center capacity continues unabated. Developers with capacity have demand from many qualified tenants at good prices, so the core economics of the business remain solid.”

While others worry about a bubble, the folks at Mesa are focused on one thing: providing power for this capacity, and clients are willing to pay for it. Until that changes, the AI and Bitcoin data center business will remain alive and prosperous on Wall Street.