United

2024

Bitcoin

April

Bitcoin miners have the opportunity to potentially generate around $13.9 billion in additional yearly revenue if they partially transition to providing energy to the artificial intelligence and high-performance computing (HPC) sector by 2027, according to investment firm VanEck.
“AI companies need energy, and Bitcoin miners have it,” VanEck stated in an Aug. 16 <a href="https://www.vaneck.com/us/en/blogs/digital-assets/matthew-sigel-bitcoin-miners-ai-arbitrage-play-to-boost-revenue/" target="_blank" rel="noopener nofollow">report</a>.&nbsp;
“Bitcoin miners generally have bad balance sheets, either because of too much debt, too much share issuance, too much executive compensation, or some combination of all three,” VanEck claimed.
VanEck estimates that if publicly traded Bitcoin mining companies shifted 20% of their energy capacity to AI and HPC by 2027, “total additional yearly profits could exceed an average of $13.9 billion per year over 13 years."
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 <img src="https://s3.cointelegraph.com/uploads/2024-08/96ca3d72-aa5b-43ac-a2da-11aa863e85fa.png" alt="Bitcoin miners may gain $13.9B yearly from 20% shift to AI and HPC — VanEck" title="">
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 Several Bitcoin mining firms have already incorporated HPC capacity into their operations. Source: VanEck
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The comments follow recent claims by investment firm <a href="https://cointelegraph.com/news/us-bitcoin-miners-kerrisdale-market">Kerrisdale Capital calling the Bitcoin mining industry</a> an “industry of snake oil salesmen.” The firm claimed that, in its current form, Bitcoin mining firms are not viable business models and, as a result, deliberately dilute.
“They issue shares, they take those shares to invest in the business. But there are no returns,” Sahm Adrangi, chief investment officer of Kerrisdale Capital, recently told Cointelegraph.
Meanwhile, VanEck noted that the benefit of Bitcoin (<a href="https://cointelegraph.com/bitcoin-price">BTC</a>) miners entering into such contracts is that AI companies are usually willing to provide the financial resources needed for capital expenditure.
Core Scientific, the fourth largest Bitcoin miner by hashrate, <a href="https://cointelegraph.com/news/coreweave-expands-core-scientific-deal-1-225-billion">recently landed a 12-year contract</a> with AI hyperscaler CoreWeave. This deal is expected to generate over $3.5 billion in revenue by supplying 200 megawatts of infrastructure.
Meanwhile, Canadian miner Hive Digital Technologies has continued expanding its facilities to offer HPC services to companies in the gaming, artificial intelligence, and graphics rendering industries, according to its fourth quarter 2023 report.
Related: <a href="https://cointelegraph.com/news/bitcoin-mining-revenue-decline-yearly-low-august-2024">Bitcoin miners record lowest daily revenue of 2024</a>
VanEck’s report comes amid a challenging year for Bitcoin miners, <a href="https://cointelegraph.com/news/bitcoin-halving">following the April Bitcoin halving</a>, which&nbsp;cut mining rewards from 6.25 BTC to 3.125 BTC for adding a block to the blockchain.
On Aug. 2, Cointelegraph reported that United States-listed Bitcoin miner Marathon Digital reported revenue of $145.1 million in the second quarter, roughly 9% lower than the $157.9 million that analysts had anticipated.
On April 8, just prior to the Bitcoin halving, CryptoQuant CEO Ki Young Ju estimated the cost of mining using Antminer S19 XPs would rise from $40,000 to $80,000 after the Bitcoin halving in mid-April. At the time of publication, Bitcoin is trading at $59,550, <a href="https://coinmarketcap.com/currencies/bitcoin/" target="_blank" rel="noopener nofollow">according</a> to CoinMarketCap data.
Magazine: <a href="https://cointelegraph.com/magazine/ai-more-power-hungry-bitcoin-profits-pose-risks-bitcoin-miners/">AI may already use more power than Bitcoin — and it threatens Bitcoin mining</a>

Bitcoin miners may gain $13.9B yearly from 20% shift to AI and HPC — VanEck

Cointelegraph

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