Bitcoin miners have a major opportunity to increase their earnings by transitioning part of their operations to artificial intelligence (AI) and high-performance computing (HPC), according to VanEck, an asset management firm. This shift could potentially generate up to $38 billion in additional revenue over the next 13 years, with annual profits possibly increasing by $13.9 billion on average during that period.
Bitcoin miners already possess the advanced hardware and cooling systems required for AI and HPC tasks. VanEck suggests that by allocating 20% of their current energy capacity to these purposes, miners could see a significant improvement in profitability. This change could also lead to a doubling of mining stock values by 2028, offering a substantial financial boost.
With extensive data centers and power resources across the U.S., Bitcoin miners are well-positioned to meet the demands of AI operations, making their facilities attractive to companies in the expanding AI industry. If miners dedicate part of their energy to AI and HPC by 2027, they could experience a substantial increase in profits, contrasting sharply with their current financial difficulties.
VanEck estimates the potential value of this AI and HPC transition at around $37.6 billion, nearly doubling the current market value of the 12 Bitcoin mining companies they analyzed, which stands at $19.7 billion. This shift could significantly improve the financial stability of these companies, many of which have been grappling with debt and high operational costs.
Entering the AI and HPC sectors could also help Bitcoin miners secure better financing terms. Many companies have restructured during the recent bear market, and AI/HPC clients are often willing to fund necessary capital expenses. This could reduce the miners' cost of capital and help them obtain better energy deals.
VanEck notes that Bitcoin mining companies already involved in AI and HPC, such as Core Scientific and TeraWulf, are performing better than those without such strategies. These companies have even outperformed Bitcoin itself in year-to-date returns, largely due to their focus on AI and HPC revenue streams.
As the connections between Bitcoin mining, AI, HPC, and electric grids continue to strengthen, particularly in regions with abundant energy and favorable regulations, VanEck believes that Bitcoin miners could see their market value double by 2028, even without any growth in Bitcoin profits. This highlights the potential for AI and HPC sectors to drive significant value for these companies.
In summary, VanEck sees a strong opportunity for Bitcoin miners to boost profitability and market value by incorporating AI and HPC into their operations. This strategic shift could help them overcome current financial challenges and secure a more stable and prosperous future.
