Bitcoin miners have an opportunity to significantly increase their revenues by reallocating some of their power to artificial intelligence (AI) and high-performance computing (HPC). According to a new report by VanEck, this move could generate additional annual revenues up to $13.9 billion.
New Directions for Bitcoin Miners
According to VanEck, if listed miners redirect only 20% of their existing and planned power capacity to AI and HPC by 2027, their profits could soar up to $13.9 billion annually over the next 13 years. "The synergy is simple: AI companies need energy, and bitcoin miners have it," wrote head of digital assets research Matthew Sigel.
Agreements and Potential Revenues
For example, Core Scientific, the fourth largest Bitcoin miner by hash rate, signed a 12-year contract with AI company CoreWeave on June 3. This deal is estimated to generate over $3.5 billion in annual revenues for Core Scientific by providing an additional 200 Megawatts (MW) to their infrastructure. In light of decreasing profitability in Bitcoin mining, such as a 40% drop in hashprice compared to pre-halving figures, this move appears particularly timely.
IMF Response and Prospects
Meanwhile, the International Monetary Fund (IMF) expresses concerns about the growing energy demand for crypto mining and data centers. In its Aug. 15 blog, the IMF stated that in 2022, these activities accounted for 2% of the world's electricity demand, and this is expected to increase over the next three years. The organization calls for higher electricity taxes on such projects to curb the rising trend.
Bitcoin miners have new opportunities to increase revenues by redirecting their power usage to AI and HPC. However, these steps may attract regulatory attention and lead to higher electricity taxes.
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