- BTC-USD
+2.39%
<a href="https://cryptoz7.com/bitcoin-is-down-44-and-its-miners-are-up-90-the-ai-pivot-explains-everything/” title=”Bitcoin Is Down 44% and Its Miners Are Up 90%. The AI Pivot Explains Everything.”>Bitcoin (BTC-USD) miner HIVE Digital Technologies (HIVE) inked a $350 million AI cloud services agreement with an unnamed enterprise customer. Scott Melker takes a closer look in the video above.
Hives Buzz, HPC Science 350 million AI cloud services agreement with investment grade enterprise customer. What does that word salad all mean?
It means that once again, we have a Bitcoin miner pivoting to AI and a publicly traded Bitcoin miner at that.
This is a continuation of a trend that I have been pounding the pavement on here, which is that Bitcoin miners are now just AI data centers.
And they’re added AI data centers who may mine Bitcoin into the future.
So we don’t have all the information on exactly what this is, but it’s very clear that Bitcoin miners are diversifying.
They’re quietly admitting that AI offers a better return on their electricity.
I mean, it seems that even though we were sold them as Bitcoin miners for all these years, the valuable asset was never exclusively Bitcoin mining, it was the power, land, cooling, data center access.
And in a weak mining economy where it costs on average $74,000 to mine a Bitcoin, those assets migrate towards the highest bidder.
And right now that highest bidder is obviously AI and hyperscalers.
There’s no surprise here that this is happening, but you’re going to hear these announcements continually. I’m going to cover them because I think that it’s still relevant, but just know that this is not a trend that’s likely to reverse unless Bitcoin starts trading at $250,000 at some point in the exceptionally near future.
Bitcoin miners become AI data centers because building an AI data center is regulatorily challenging, especially in a lot of blue states. We saw the news in New York.
Bitcoin miners are uniquely well positioned already to just flick a switch and become data centers and that’s what they’ve been pitching for a very, very long time.
