Bitcoin Miners to Leverage AI Boom

In its latest report, VanEck's Sigel noted the growing role of BTC miners in AI, high-performance computing (HPC), and the overall energy markets.

The Bitcoin mining industry had a difficult few months with the halving event in April, but the booming artificial intelligence (AI) market could be a major game-changer, says VanEck head of Digital Assets Matthew Sigel.

In its latest report, VanEck’s Sigel highlights the increasing role of BTC miners in AI, high-performance computing (HPC) and the broader energy markets. While the BTC mining industry faced some challenges with the halving event, what many investors don’t realize is that BTC miners have a strong exposure to the booming AI sector.

Given that AI companies have huge energy demands, the Bitcoin miners that have the necessary power resources could become the major suppliers. Amid this high energy demand from miners and data centers, the wait time for grid connection in North America has exceeded four years, according to VanEck.

However, the BTC miners have been catering to the immediate demand for AI and HPC operations. By drawing significant power loads and participating in grid balancing programs, miners can energize GPUs for AI within a year—much faster than the four-plus years required for new AI data center developments to come online.

Considering this time advantage, there is a significant valuation gap between Bitcoin mining stocks and data center stocks trading in the market, said VanEck’s Sigel.

Bitcoin Mining Stocks Valuation Gap

The above is the detailed content of Bitcoin Miners to Leverage AI Boom. For more information, please follow other related articles on the PHP Chinese website!