Core

Bitcoin

Rise

<h2 id="key-points">Key Points</h2>
<ul>
 <li>Bitcoin miners are diversifying their revenue streams and engaging in strategic deals after the latest Bitcoin halving.</li>
 <li>Share prices in the sector are increasing amid M&amp;A activity and potential over reducing miner rewards.</li>
</ul>
<p>Following the latest halving of <a href="https://crypto.ro/en/cryptocurrencies/bitcoin/" rel="noopener noreferrer nofollow">Bitcoin</a>, miners are releasing updates on their May production.</p>
<p>In the aftermath of this event, several major players are striving to increase revenues through strategic deals and diversification.</p>
<h2 id="miners-diversify-revenues">Miners Diversify Revenues</h2>
<p>Companies like Core Scientific have been exploring ways to boost revenues since the Bitcoin halving in April, which cut miner rewards by 50%.</p>
<p>Likewise, other mining firms such as Bit Digital and Hut 8 have been observed to diversify their revenue streams into AI.</p>
<p>Core Scientific, a North American Bitcoin mining and hosting services provider, recently signed a series of 12-year contracts with AI Hyperscaler CoreWeave, a cloud computing company.</p>
<p>However, Core Scientific turned down CoreWeave’s buyout offer of over $1 billion, stating it “significantly undervalues” the company.</p>
<h2 id="attracting-potential-buyers">Attracting Potential Buyers</h2>
<p>Analysts at JPMorgan perceive this news about Core Scientific as making the entire sector more appealing to potential buyers.</p>
<p>They believe that Hyperscalers and AI firms are considering alternatives, such as leasing power/datacenter capacity from Bitcoin miners or even acquiring them outright.</p>
<p>The analysts also noted that some operators are feeling the financial strain from the recent block reward halving and are actively considering exit strategies.</p>
<p>This news about Core Scientific is particularly relevant to Iris Energy, which was early to adopt HPC and has secured the rights to develop more than 2 gigawatts (GW) of power.</p>
<p>TeraWulf has also announced pilot HPC programs.</p>
<h2 id="share-prices-rise-amid-ma-activity">Share Prices Rise Amid M&amp;A Activity</h2>
<p>Riot Platforms increased its ownership stake in Bitfarms to 12% ahead of a special meeting of the company’s shareholders.</p>
<p>Riot Platforms had previously purchased a 9.25% stake in Bitfarms after a rejected acquisition proposal, which would have valued the latter at $950 million and resulted in one of the largest publicly listed Bitcoin mining firms.</p>
<p>Bitdeer announced that it has entered into a $140 million share purchase agreement with FreeChain Inc., also known as Desiweminer, a fabless crypto ASIC design company.</p>
<p>Shareholders seem to prefer the potential of M&amp;A over reducing miner rewards, as several stocks have seen a surge this week.</p>
<p>Iris Energy shares have risen by over 35% in the past five trading days, while TeraWulf shares have increased by 32%.</p>
<p>Core Scientific’s shares soared by 40% on Tuesday alone and have risen by 65% over the past five days.</p>
<p>Despite being hit by a short-seller report, shares of two of the sector’s largest companies by market cap, Marathon Digital and Riot Platforms, are also trading higher.</p>

Bitcoin Halving Ignites Buzz in Acquisition Deals and Stock Market Values

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