Bitcoin miners are increasingly seeking partnerships with artificial intelligence companies to revitalize their struggling businesses[1][3]. This strategic shift comes as miners face challenges due to high energy costs, expensive computing equipment, and reduced mining rewards following the recent halving event[1].
Key points of this trend include:
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Bitcoin miners are leveraging their existing infrastructure, including data centers, access to cheap power, and high-performance computing capabilities, to attract AI companies[1][3].
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AI developers require substantial computing power and energy resources, which align well with miners' assets[1].
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Core Scientific, one of the world's largest bitcoin miners, recently struck a deal with AI cloud provider CoreWeave, estimated to be worth $4.7 billion in revenue over 12 years[1][4].
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Other major miners like Hut 8, Hive, and Bit Digital are also pivoting towards AI services[3][4].
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This shift is driven by the need for more stable revenue streams, as cryptocurrency mining profitability has become increasingly volatile[3].
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The market has responded positively to this trend, with the market cap of 14 leading Bitcoin mining companies increasing by $4 billion (22% rise) since early June 2024[3].
Citations:
[1] https://www.ft.com/content/a3e02262-11ea-4125-a38d-b13dbb86767e
[2] https://x.com/FT/status/1813432117948272883
[3] https://time.com/6993603/ai-bitcoin-mining-artificial-intelligence-energy-use/
[4] https://www.cnbc.com/2024/06/03/bitcoin-miners-sink-millions-into-ai-business-seek-billions-in-return.html
[5] https://www.bloomberg.com/tosv2.html?url=L25ld3MvYXJ0aWNsZXMvMjAyNC0wNi0wNS9haS1zLWluc2F0aWFibGUtZGF0YS1jZW50ZXItZGVtYW5kLW1ha2VzLWNyeXB0by1taW5lcnMtdGFyZ2V0cw%3D%3D&uuid=d9bf1276-2357-11ef-b6fe-9f2f70c15071