Bitcoin miners may significantly boost their revenue by shifting some of their energy capacity to artificial intelligence (AI) and high-performance computing (HPC), according to investment firm VanEck. The firm suggests that by 2027, miners could generate an additional $13.9 billion annually if they allocate 20% of their energy towards these sectors.
The VanEck report published on August 16 revealed that Bitcoin miners are struggling because their operating expenses lack operational stability and Bitcoin prices’ stability. AI and HPC could help miners stabilize their financial conditions by diversifying operations. ”AI companies require energy, and Bitcoin miners have energy,” the report said.
Kerrisdale Slams Bitcoin Miners, VanEck Sees Opportunity in AI Partnerships
The suggestion comes when the Bitcoin mining industry is facing criticism due to its impact on energy consumption. Recently, the investment firm Kerrisdale Capital said adverse things about Bitcoin miners; they referred to these firms as an ‘industry of snake oil salesmen,’ They have pointed out that the business models of these firms at the current time are not sustainable. For instance, Sahm Adrangi, the Chief Investment Officer of Kerrisdale Capital, indicated that most of the Bitcoin mining companies offered shares in an attempt to generate funds to support their operations. Yet, they do not deliver the required returns.
However, VanEck thinks an endorsement pact with AI players could be disruptive. AI firms are typically willing to fund expensive infrastructure costs, giving Bitcoin miners the financial security they require. One of the key players in the Bitcoin mining space, Core Scientific, inked a deal with the AI hyperscaler CoreWeave that will last for 12 years. This particular deal is anticipated to reach more than $3.5 billion in revenues established through offering 200MW of structures.
Hive Digital Technologies, a Canadian mining company, is also building more centers to provide HPC services to different industries, such as gaming, AI, and graphics.
Lastly, it can be stated that as energy consumption in AI and HPC increases in the future, miners will be able to deliver added value by using that energy to support their operations, thus enhancing their financial situation. With a portion of energy resources transferred, they can not only avoid high risks related to Bitcoin fluctuation but also benefit from the AI and HPC industries.
