The founder of Capriole Investments has warned that the Bitcoin miner AI pivot could result in mining revenue plunging to 30% in 2-3 years.
Bitcoin Mining Companies Are Fast Pivoting To AIBelow is a table that assembles the data related to the public miners in the process of shifting toward the AI compute business.
The companies who are targeting a complete or near-complete transition also happen to be the ones that have seen their stock perform the best in the market. “Those with 80%+ AI share of revenue targets saw their stocks climb up over 500% on average,” explained the analyst. “Those targeting <60% AI revenue saw 1/10th the growth, with many having negative 2 year returns.”
Bitcoin is a cryptocurrency that’s secured by its mining network, but given the pivot that the major miners are making, it would appear that the energy allocation toward the network is weakening.
Nonetheless, even if AI hasn’t directly impacted the Hashrate yet, the revenue projections suggest that a shift could soon be coming, and a notable one at that. “Bitcoin used to be famed for having the biggest computing network in the world,” said Edwards. “It’s now collapsing into AI at record pace.”
BTC PriceAt the time of writing, Bitcoin is floating around $76,200, up 5.5% in the last seven days.
