Bitcoin Miners Could Earn $13.9 Billion Yearly by Shifting Energy to AI and HPC
Bitcoin miners may have the chance to earn an extra $13.9 billion each year by 2027 if they start providing energy to the growing artificial intelligence (AI) and high-performance computing (HPC) sectors.
This insight comes from an August 16 report by investment firm VanEck, which sees this shift as a way for miners to boost their income amid challenges in the Bitcoin market.
“AI companies need energy, and Bitcoin miners have it,” the report states. VanEck believes that Bitcoin miners, who face financial challenges due to volatile Bitcoin prices and rising operating costs, could improve their stability by redirecting a portion of their energy resources towards AI and HPC needs.
The report suggests that if publicly traded mining companies allocated 20% of their energy capacity to AI and HPC by 2027, they could collectively add around $13.9 billion in annual revenue over the next 13 years.
Many Bitcoin mining companies are currently having financial problems due to high debt, overpaying executives, and poor balance sheets due to the April halving, which cut block rewards in half.
VanEck argues that working with AI and HPC companies could help address these issues, as such companies usually have the funds needed to cover energy costs and infrastructure.
However, some miners are already moving in this direction. For instance, Core Scientific, one of the largest Bitcoin miners by hash rate, recently signed a 12-year deal with AI company CoreWeave. This contract is expected to bring in over $3.5 billion by supplying 200 MW of infrastructure.