According to investment corporation VanEck, Bitcoin miners could increase their profits by shifting some of their energy capacity to artificial intelligence (AI) and high-performance computing (HPC). The company suggests that through 2027, miners could generate an additional $13. 9 billion per year if they allocated 20% of their energy to those sectors.
VanEck’s report published on Aug. 16 found that Bitcoin miners are suffering because their operating expenses lack operational stability and stability of Bitcoin’s value. AI and HPC could simply stabilize mining companies’ financial situations by diversifying their operations. “AI companies want energy and Bitcoin miners want it,” the report says.
The suggestion comes as the Bitcoin mining industry faces complaints due to its effect on energy consumption. Recently, investment company Kerrisdale Capital has made negative comments about Bitcoin miners; They referred to these corporations as the “snake oil industry. ” They noted that the business models of those corporations at this time are not sustainable. For example, Sahm Adrangi, chief investment officer at Kerrisdale Capital, reported that most Bitcoin mining corporations will be offering shares in order to generate budget to help their operations. However, they do not produce the expected returns.
However, VanEck believes that a pact with AI players can be simply disruptive. AI corporations are regularly willing to fund expensive infrastructure costs, offering Bitcoin miners the monetary security they need. One of the major players in the Bitcoin mining industry, Core Scientific, has signed a deal with AI hyperscaler CoreWeave that will run for 12 years. This specific deal is expected to generate more than $3. 5 billion in revenue through the two-hundred-MW design offering.
Hive Digital Technologies, a Canadian mining company, is also building more centers to supply HPC to other industries, such as gaming, artificial intelligence and graphics.
Finally, it can be argued that as energy consumption in AI and HPC increases in the future, miners will be able to raise the price by employing this power in their operations, thus improving their monetary situation. With a portion of the transferred energy resources, they can not only avoid the major dangers of Bitcoin fluctuations, but they can also gain advantages from the AI and HPC industries.