Bitcoin miners could earn $13.9B yearly by shifting 20% to AI and HPC
Bitcoin (CRYPTO:BTC) miners have an opportunity to significantly increase their profitability by reallocating part of their energy capacity to the artificial intelligence (AI) and high-performance computing (HPC) sectors.
According to a report by investment firm VanEck, Bitcoin miners could generate an additional $13.9 billion in yearly revenue if they shift 20% of their energy resources to these sectors by 2027.
The report highlights that Bitcoin miners, who often face financial challenges due to debt, share dilution, and high executive compensation, could benefit from diversifying their operations.
By partnering with AI companies, which require substantial energy resources, miners could secure a more stable and profitable revenue stream.
Several Bitcoin mining firms have already started incorporating HPC capabilities into their operations.
For instance, Core Scientific, one of the largest Bitcoin miners by hashrate, recently signed a 12-year contract with AI hyperscaler CoreWeave.
This deal is expected to generate over $3.5 billion in revenue by providing 200 megawatts of infrastructure.
Similarly, Hive Digital Technologies is expanding its facilities to offer HPC services to companies in gaming, AI, and graphics rendering industries.
Despite these opportunities, the Bitcoin mining industry is facing a challenging year, especially following the Bitcoin halving in April 2024, which reduced mining rewards from 6.25 BTC to 3.125 BTC per block.
This has increased the cost of mining, leading to lower profits for many miners.
The halving has made it even more critical for miners to explore new revenue streams, such as those offered by the AI and HPC sectors.
VanEck’s report suggests that by diversifying their operations and capitalizing on the growing demand for AI and HPC, Bitcoin miners could improve their financial stability and profitability, making them more resilient in the face of industry challenges.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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