“Shares of Bitcoin miners, who are engaged in artificial intelligence in parallel, outperform competitors who only mine cryptocurrency. This statement was made by Bernstein analysts, writes The Block. AI-focused miners such as Core Scientific, IREN, and Terawulf have seen greater success thanks to investor confidence in diversifying business models, more predictable revenue streams, and increased flexibility. Analysts noted that the hashrate of such miners may increase […]”, — write: businessua.com.ua
Shares of Bitcoin miners, who are engaged in artificial intelligence in parallel, outperform competitors who only mine cryptocurrency. Such a statement was made analysts Bernstein, writes The Block.
AI-focused miners such as Core Scientific, IREN, and Terawulf have seen greater success thanks to investor confidence in diversifying business models, more predictable revenue streams, and increased flexibility.
Analysts have noted that the hashrate growth of such miners may be slower than those focused solely on Bitcoin. But AI-focused companies are expanding their data center infrastructure, opening up additional opportunities in the fast-growing artificial intelligence sector.
The stock returns of various bitcoin miners compared to digital gold. Source: Bernstein.
Experts also noticed peculiarities in the behavior of different categories of mining players:
- large companies such as MARA (formerly Marathon Digital), Riot Platforms and CleanSpark hold significant amounts of Bitcoin on their balance sheets. They sold less than in 2023 and retained 100% of August production. Firms agree to raise external capital or dilute shares to expand their share of the mining market;
- data center-oriented companies, on the other hand, do not keep bitcoins on their balance sheets. Often this is related to domestic politics or debt obligations. They sell 100% of the rewards to fund operations.
Bernstein noted that public miners that exclusively mine the cryptocurrency will bottom out near current price levels and benefit from Bitcoin’s rally once the uncertainty surrounding the US election dissipates.
Experts have previously noted that miners are attractive partners for creating data centers for AI due to access to power sources and operational capabilities.
As a reminder, artificial intelligence offers 17-25 times more revenue per spent kWh compared to Bitcoin mining — $0.17-0.2 versus $3-5.
The source