Bitcoin miners could secure an extra $13.9bn a year by leveraging 20% of their energy availability into AI partnerships by 2027, according to US investment management firm VanEck.
VanEck reported that publicly traded Bitcoin mining companies could benefit from the AI sector’s need for energy resources to create an additional revenue stream.
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By partitioning a fifth of the energy currently used in mining operations, Bitcoin miners can provide the much-needed energy for computational power in sectors outside of cryptocurrency.
Artificial intelligence requires a vast amount of computing power due to the need to execute complex algorithms and store large data sets, the bigger the calculations the more energy is needed to complete them.
Storage space is particularly important, and the power needed to maintain it, as the more data an AI system can access the more accurate its outputs are – and an increase in computational power from Bitcoin miners may enable more accurate AI.
The partnerships are a way of addressing the volatility of crypto markets with the high-performance computing (HPC) and artificial intelligence (AI) industries offering more stability and a greater opportunity for high yield returns.
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By GlobalDataPreviously Bitcoin miners have been labelled unsustainable and have received criticism from investment firms for their current business model, but diversifying into other areas of technology means a greater chance of survival for these companies.
Bitcoin miners are pivoting due to increased costs and reduced rewards, meaning many are seeking alternative income.
A partnership with an AI firm could be the perfect solution to acquiring regular and reliable income with companies already taking advantage of this new avenue.
Mining company Hive Digital Technologies has expanded its facilities to support HPC services across AI, gaming and graphics rendering; similarly Core Scientific has signed a 12-year contract with CoreWeave Cloud’s AI Hyperscaler.
Core Scientific has seen a substantial increase in its market valuation following the announcement and the deal is predicted to generate over $3.5bn in revenue.
