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The Bitcoin <a href="https://ultramining.com/news/en/texas-residents-challenge-bitcoin-mining-industrys-impact-on-power-grid-and-communities/">mining industry</a> may be significantly undervalued. Utilizing data from Bernstein's latest analysis, the industry is expected to see a substantial increase in value due to strategic shifts toward AI and high-performance computing (HPC) <a href="https://ultramining.com/news/en/crypto-miners-shift-gears-ai-is-the-new-gold-rush/">data centers</a>, according to <a href="https://x.com/benemodi/status/1811103509791789121">Benemod</a>. 
Bernstein's report upgraded the price targets of Bitcoin <a href="https://ultramining.com/news/en/blockstream-aims-for-bitcoin-profit-with-mining-rig-investment-ahead-of-2024-halving/">mining companies</a> IREN and <a href="https://ultramining.com/news/en/bitcoin-mining-giant-core-scientific-prepares-for-post-bankruptcy-comeback/">Core Scientific</a> (CORZ) to $26 and $17, respectively. By 2027, <a href="https://ultramining.com/news/en/russias-bitcoin-gold-rush-mining-machine-influx-outpaces-rest-of-the-world/">Bitcoin miners</a> are projected to hold 12 gigawatts (GW) of power capacity, with approximately 2.5GW allocated to AI and HPC data centers. This allocation represents about 20% of their total power capacity. 
Traditional data centers have a valuation of around $32 million per megawatt (MW). Applying this valuation to the AI and HPC power capacity of Bitcoin miners results in an estimated $80 billion valuation for this segment alone (32M x 2500MW).&nbsp; 
Currently, the combined enterprise value (EV) of large publicly traded Bitcoin miners, excluding their held cryptocurrencies (HODLs), stands at roughly $20 billion. The anticipated growth in AI and HPC data centers suggests that the 20% power allocation by Bitcoin miners could potentially be worth four times the current EV of the industry by 2027. 
This projection does not account for the remaining 80% of power capacity dedicated to Bitcoin mining and other AI <a href="https://ultramining.com/news/en/bitcoin-mining-reshaping-landscape-amid-global-interest-surge/">hosting</a> services, indicating even greater potential for the industry's valuation growth. As Bitcoin miners continue to diversify their operations, integrating AI and HPC could unlock significant value and drive the industry's future expansion.

Is the Bitcoin Mining Industry Massively Undervalued?

Ultramining_Eng

Andre artikler udgivet 12. jul. 2024

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