Bitcoin Mining Companies Poised for AI Integration, Report Reveals

According to Odaily, a new report from Bernstein indicates that investors are recognizing the readiness of Bitcoin mining companies to venture into the artificial intelligence (AI) sector. Bernstein analysts, in their newly published Blackbook, an annual in-depth study on cryptocurrencies, highlighted that Bitcoin mining companies are trading at prices 90% lower than traditional data centers. However, this discount may not last long. Core Scientific, a mining company embracing AI transformation, has seen its stock price surge nearly 300% in 2024. Analysts noted that Bitcoin mining companies find themselves in a unique position, possessing disproportionate 'power access' in a world where electricity is limited. This access to 'ready-made' cheap electricity, combined with data center capabilities, makes Bitcoin mining companies attractive partners for AI cloud providers looking to accelerate their time to market. New data centers can take up to four years to connect to the grid, partly due to the queue congestion caused by new power-hungry Bitcoin mines and AI data centers. More importantly, utilizing the energy from existing Bitcoin mines can reduce this time by 75%. Analysts stated that traditional data centers are valued at $30 million to $50 million per megawatt, while Bitcoin mining companies are valued at $2 million to $4 million per megawatt. 'We believe the market underestimates the value of 'power access' and challenges mining companies due to Bitcoin's cyclical volatility. Therefore, diversifying into AI data centers will enable mining companies to trade closer to their potential as 'energy' assets,' the analysts concluded.