[Bernstein said that institutional investors in Bitcoin mining machines are most concerned about the potential of AI data centers, not Bitcoin]
Institutional investors are being attracted by the potential of Bitcoin mining companies in the artificial intelligence (AI) industry and may unexpectedly benefit from the cryptocurrency bull run. The Bernstein report points out that if the price of Bitcoin reaches $200,000, investors may benefit from the growth of both AI and Bitcoin, which is an unexpected dual opportunity.
Bitcoin miners have advantages in AI infrastructure, large power resources and strategic geographical locations. According to Bernstein, miners currently have 4GW of power, which is expected to grow to 6GW by the end of 2024. These resources give miners significant infrastructure advantages over traditional data centers.
Bernstein suggested re-evaluating Bitcoin miners because of their lower valuations. Bitcoin miners are trading at about $4 million per megawatt, compared to $30-50 million for traditional data centers. As miners develop in AI data centers, this gap may narrow.
Bitcoin miners also have experience in high-density computing, up to 70-80KW per rack, which is suitable for the high power requirements of AI computing. These miners are often located in unconventional locations with abundant power resources and develop large sites. For example, TeraWulf's New York site has 500MW of potential hydropower capacity suitable for cooling needs.
Bernstein further emphasized that Bitcoin miners’ expertise in power management and cost control will be valuable in managing the energy-intensive demands of AI computing.
