Ongoing Miner Capitulation
The ongoing capitulation among miners, driven by a falling Bitcoin price, a declining hash rate, and a meager hash price, has significantly impacted publicly traded Bitcoin miners. Despite these challenges, public miners have shown resilience post-halving, with a total market cap exceeding $25 billion. Notably, WGMI experienced a 24% rise in June and a 23% year-to-date increase.
Miner Share Prices
Amidst these difficulties, a silver lining has emerged in the form of the AI boom. This surge in artificial intelligence has positively influenced the mining sector. NVIDIA’s rise to becoming the largest company globally exemplifies this trend, benefiting miners. Core Scientific has expanded its CoreWeave infrastructure to 270 MW, while Hut 8 received a $150 million boost for AI data center expansion. According to CNBC, Bit Digital, another Bitcoin miner, now derives an estimated 27% of its revenue from AI.
Sector Acquisition Trends
The sector’s acquisition trend is expected to continue, as evidenced by Cleanspark’s activities and the ongoing rivalry between Riot and Bitfarms. A recent analysis by JP Morgan highlights that the success of these Bitcoin miners can be attributed to their diversification into AI data center ventures. This diversification provides a much-needed buffer against a depressed Bitcoin price.
Diversification Strategies
Additionally, Marathon Digital has diversified its revenue by mining Kaspa, a proof-of-work (PoW) layer 1 blockchain network. This highlights the intense and competitive nature of the industry, especially in the wake of the halving. Miners are exploring various strategies to boost their revenues, showcasing their resilience and adaptability in a challenging environment.
The post Public Bitcoin miners diversify into AI as market cap exceeds $25 billion appeared first on CryptoSlate.
