Bitcoin Miners Will Fight AI Boom Before It Takes Off: Bernstein

Bitcoin Miners Will Fight AI Boom Before It Takes Off: Bernstein



Bitcoin Miners are facing a new enemy to fight before this week. Cut in halfThe AI ​​boom.

According to analysts at investment firm AllianceBernstein, Gautam Chugani and Mahika Sapra, miners are now competing in AI data centers like Texas.

Bitcoin miners New digital coins are mostly decentralized operations. To do that, Monday's report explains, they need to use more computers and, as a result, more power. Meanwhile, so is the growing AI industry. Thirst for power. Both industries are looking at places like Texas, which has cheap energy and plenty of land to build data centers.

According to today's report, growing competition with the AIE industry “has made land acquisition under power contracts less competitive with miners.”

okex

The report also adds that AI hype can help miners with excess cash flow.

“Bitcoin ASIC chips have had to compete with strong AI chips this cycle, and therefore producers have shown interest in miners with more contracts/purchase options with capital increases.”

The analysts added that miners were at a “relative advantage” in the coming half.

Miners are rewarded with Bitcoin for producing new coins, but this week's event, which takes place every four years, will halve the reward from 6.25 BTC to 3.125 BTC. This means that the mines were preparing to work more efficiently to stay in the race.

Bernstein analysts also said that the CEOs of the mining companies will be in a relatively comfortable financial position before their companies are halved – despite the current rise in the price of Bitcoin.

“The CEOs have indicated that the miners have relatively low debt on their balance sheets and are not providing any financial support,” the report added.

The price of Bitcoin It is down from a March high of nearly $74,000 per penny. The asset is now trading at $63,145, according to CoinGecko—just below the previous all-time high of $69,044 touched in 2021.

Edited by Ryan Ozawa.

Stay on top of crypto news, get daily updates in your inbox.

Leave a Reply

Pin It on Pinterest