Bitcoin: Miners could bounce back thanks to AI

Bitcoin miners are currently going through a difficult period following the halving of rewards. To stay afloat, some are exploring alternative solutions, including developing AI data centers. This strategic pivot could transform the bitcoin mining industry and offer unprecedented opportunities. Let’s dive into this new trend and see how miners envision their future.

The Challenge for Bitcoin Miners Post-Halving

Since the last mining reward reduction or the 4th halving, bitcoin miners face a drastic reduction in their income. Sometimes, they act as if they are going to capitulate. This situation forces them to seek solutions to maintain their profitability.

The shift towards AI data centers appears to be a lifeline. In fact, a Bernstein report highlights the strategic advantage of bitcoin miners: their interconnection energy capacity, a crucial asset in creating AI data centers.

«Bitcoin miners control about 6 GW of energy access, with a projection of 12 GW by 2027», experts from this research firm point out.

This resource gives them a head start over new entrants, allowing a smoother transition to AI infrastructures.

The Appeal of Crypto-AI Data Centers

AI data centers represent a golden opportunity for bitcoin miners. Bernstein points out that nearly 20% of miners’ energy capacity could be redirected towards AI by 2027.

This trend is already visible among players like Core Scientific, Tether and Iris Energy, who combine bitcoin mining with AI infrastructure. Their strategic partnerships, such as Core Scientific’s 12-year agreement with CoreWeave, illustrate this evolution.

By integrating AI into their operations, these companies diversify their revenue sources and minimize the impact of bitcoin’s volatility.

“Bitcoin data centers are ideal for AI due to their high energy density and cooling infrastructure», explain Bernstein’s analysts”.

Towards a Mining Revolution

The shift towards AI data centers is not limited to a handful of pioneers. The report mentioned above predicts a growing adoption of this strategy among major bitcoin miners, who should reach 25% of the global hash rate.

This consolidation is fueled by lucrative opportunities in AI, offering welcome stability in a often unpredictable bitcoin market. Although the firm predicts a BTC at $500,000 in 2029 and over $1 million in 2033.

Moreover, Bernstein anticipates that the market will eventually recognize the strategic value of miners’ energy portfolios. Because “bitcoin miners are undervalued for their potential in AI data centers”, the report asserts, reinforcing the prospect of a rise in their shares.

By pivoting towards AI data centers, bitcoin miners not only survive the current storm, but also prepare for a future where bitcoin and AI coexist harmoniously. This strategy opens the door to exciting and unexpected prospects for the industry. One thing is certain: bitcoin miners are not short of ideas to stay afloat.