Bitcoin Miners Might See $13.9 Billion Revenue Increase by Transitioning to AI
Bitcoin miners could see a boost of approximately $13.9 billion in annual revenue by 2027 if they start supplying energy to the AI and high-performance computing (HPC) sectors, according to VanEck.
In a report dated August 16, VanEck highlighted the potential for Bitcoin miners to tap into the energy needs of AI companies, stating, “AI companies need energy, and Bitcoin miners have it.”
The investment firm notes that many Bitcoin miners are struggling financially due to high debt, excessive share issuance, and other issues. VanEck estimates that if these miners allocated 20% of their energy output to AI and HPC, they could earn an additional $13.9 billion per year over the next 13 years.
This forecast contrasts with recent criticism from Kerrisdale Capital, which labeled Bitcoin mining as a “snake oil” industry, arguing that current business models are unsustainable and lead to shareholder dilution.
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Despite these concerns, VanEck pointed out that AI companies are often willing to fund capital expenditures, making them attractive partners for miners. For example, Core Scientific has secured a 12-year agreement with CoreWeave, an AI hyperscaler, expected to bring in over $3.5 billion by providing 200 megawatts of power.
Additionally, Hive Digital Technologies, a Canadian miner, is expanding its facilities to support HPC services for industries like gaming and AI.
This analysis from VanEck arrives during a challenging period for Bitcoin miners, following the April halving event that reduced mining rewards from 6.25 BTC to 3.125 BTC per block.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
