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Bitcoin Mining Companies Tap into AI Computing Revenues
Bitcoin mining companies such as Core Scientific and CleanSpark are upgrading their data centers to serve AI clients like Amazon and Microsoft. These miners are entering into long-term leases for AI infrastructure while still operating some mining rigs.
The shift towards mining has driven stock prices up: Core Scientific's shares have increased by 10% this year, while CleanSpark's shares have surged by 25%. Despite Bitcoin mining becoming more challenging and less profitable, the stock prices of these companies continue to rise even as cryptocurrency prices fall.
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“The opportunity for miners to pivot to AI is one of the biggest opportunities I can imagine,” said Adam Sullivan, CEO of Core Scientific.
This transition is not straightforward, as AI workloads require advanced cooling and faster networks, necessitating the replacement of Bitcoin machines with graphics processors. However, this collaboration allows technology companies to grow faster and spend less than building new facilities.
In 2024, the stock prices of Core Scientific quadrupled following their first AI contract in February. The CoinShares Bitcoin Mining ETF has risen by approximately 90% this year, despite Bitcoin giving back its gains for 2025.
CleanSpark raised $1.15 billion to expand its data center infrastructure while maintaining its Bitcoin mining operations. This dual approach is partly due to energy providers needing partners who can quickly reduce consumption during grid constraints.
Matthew Schultz, CEO of CleanSpark, explained, “During weather-related events or other disruptions, we can throttle back part of our power portfolio to stabilize the grid.”
However, not every miner can meet these requirements, as the transition from Bitcoin mining to high-performance computing involves significant costs and upgrades.
In summary, Bitcoin mining companies are increasingly diversifying into AI computing to enhance revenue streams, with notable stock price increases reflecting this trend.
Miner Capitulation in the Bitcoin Network: VanEck Analyzes Hashrate Decline
A noticeable decline in Bitcoin's hashrate in mid-December has sparked a debate about the state of the mining sector and potential market implications. According to data from VanEck, the global computing power of the Bitcoin network fell by approximately 4% in the 30 days leading up to December 15.
Analysts interpret this drop as a sign of increasing miner capitulation, which has historically coincided with positive return phases for Bitcoin. Since 2014, Bitcoin has achieved positive returns in 65% of cases within 90 days following a decline in hashrate.
| Hashrate Decline | Positive Returns (90 Days) |
|---|---|
| Decline | 65% |
| Increase | 54% |
VanEck's analysis indicates that a sustained weakness in hashrate is a contrarian, typically positive signal. In cases of negative 90-day hashrate trends, positive Bitcoin returns occurred in 77% of instances over 180 days, with an average performance of around 72%.
Currently, Bitcoin is trading at approximately $88,300, nearly 30% below its all-time high from early October. The economic conditions for miners are under pressure, with rising costs impacting profitability.
In conclusion, the recent decline in Bitcoin's hashrate may signal potential future gains, as historical patterns suggest that such downturns often precede market recoveries.
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