BTC mining companies are diversifying into AI and high-performance computing to double revenues.
VanEck analysts project significant value creation potential from this strategic shift.
Publicly
listed Bitcoin (BTC) mining companies from Wall Street are exploring new avenues for
revenue generation, with a focus on high-performance computing (HPC) and artificial
intelligence (AI), according to recent analysis from investment management firm
VanEck.
Bitcoin Miners Eye AI and
High-Performance Computing for Revenue Boost
The shift
comes as miners seek to diversify their operations and capitalize on the
growing demand for computational power in the AI sector. VanEck's head of
digital assets research, Matthew Sigel, estimates that this strategic pivot
could unlock $38 billion in value for mining companies by 2027.
“AI
companies need energy, and bitcoin miners have it,” commented
Sigel. “As the market values the growing AI/HPC data center market, access
to power—especially in the near term—is commanding a premium.”
The
synergy between Bitcoin mining and AI computing stems from the miners'
access to abundant energy resources and existing data center infrastructure. As
AI development intensifies, the demand for energy-intensive computing
facilities has surged, creating a natural fit for mining operations looking to
diversify.
“Many
miners are leaning toward the complementary strategies presented by Bitcoin
& AI/HPC,” added Sigel. “In its May 2024 update, Iris Energy noted that
cloud services help optimize capital costs and diversify revenue streams,
smoothing returns through Bitcoin’s cycle.”
Examples of
such moves have been evident since last year. For instance, HIVE Blockchainrebranded
to HIVE Digital to better reflect the evolving nature of its business,
which now focuses not only on BTC mining but also on supporting the HPC and AI
industries. The company expects this new venture to
double its revenues, and to that end, it announced the construction of a
new hydroelectric data center.
Don't Miss the Market
Opportunity, Says VanEck
Despite the
optimistic outlook, recent market trends have shown a divergence between
Bitcoin's performance and mining stocks. The MarketVector Digital Asset Equity
Index, which tracks major players in the digital asset space, has
underperformed Bitcoin by a significant margin year-to-date. This disparity
suggests that investors may be overlooking the potential upside of miners'
diversification strategies.
VanEck notes
that while Bitcoin mining remains the core business for these companies, the
ability to pivot towards AI and HPC could provide a hedge against
cryptocurrency market volatility and create more stable revenue streams.
“While the
miner AI/HPC trend is nascent, it represents a significant merger of two
high-growth tech sectors, creating a fascinating game theory dynamic,” Sigel concluded.
“As some miners go offline to run GPUs, Bitcoin’s difficulty algorithm will
automatically adjust, allowing the remaining miners to gain a slightly larger
market share.”
Although
cryptocurrencies still account for the majority of revenues for the largest
miner on Wall Street, Hive Digital, in the second quarter HPC generated $2.6
million—and these figures are expected to continue growing.
Publicly
listed Bitcoin (BTC) mining companies from Wall Street are exploring new avenues for
revenue generation, with a focus on high-performance computing (HPC) and artificial
intelligence (AI), according to recent analysis from investment management firm
VanEck.
Bitcoin Miners Eye AI and
High-Performance Computing for Revenue Boost
The shift
comes as miners seek to diversify their operations and capitalize on the
growing demand for computational power in the AI sector. VanEck's head of
digital assets research, Matthew Sigel, estimates that this strategic pivot
could unlock $38 billion in value for mining companies by 2027.
“AI
companies need energy, and bitcoin miners have it,” commented
Sigel. “As the market values the growing AI/HPC data center market, access
to power—especially in the near term—is commanding a premium.”
The
synergy between Bitcoin mining and AI computing stems from the miners'
access to abundant energy resources and existing data center infrastructure. As
AI development intensifies, the demand for energy-intensive computing
facilities has surged, creating a natural fit for mining operations looking to
diversify.
“Many
miners are leaning toward the complementary strategies presented by Bitcoin
& AI/HPC,” added Sigel. “In its May 2024 update, Iris Energy noted that
cloud services help optimize capital costs and diversify revenue streams,
smoothing returns through Bitcoin’s cycle.”
Examples of
such moves have been evident since last year. For instance, HIVE Blockchainrebranded
to HIVE Digital to better reflect the evolving nature of its business,
which now focuses not only on BTC mining but also on supporting the HPC and AI
industries. The company expects this new venture to
double its revenues, and to that end, it announced the construction of a
new hydroelectric data center.
Don't Miss the Market
Opportunity, Says VanEck
Despite the
optimistic outlook, recent market trends have shown a divergence between
Bitcoin's performance and mining stocks. The MarketVector Digital Asset Equity
Index, which tracks major players in the digital asset space, has
underperformed Bitcoin by a significant margin year-to-date. This disparity
suggests that investors may be overlooking the potential upside of miners'
diversification strategies.
VanEck notes
that while Bitcoin mining remains the core business for these companies, the
ability to pivot towards AI and HPC could provide a hedge against
cryptocurrency market volatility and create more stable revenue streams.
“While the
miner AI/HPC trend is nascent, it represents a significant merger of two
high-growth tech sectors, creating a fascinating game theory dynamic,” Sigel concluded.
“As some miners go offline to run GPUs, Bitcoin’s difficulty algorithm will
automatically adjust, allowing the remaining miners to gain a slightly larger
market share.”
Although
cryptocurrencies still account for the majority of revenues for the largest
miner on Wall Street, Hive Digital, in the second quarter HPC generated $2.6
million—and these figures are expected to continue growing.
Damian's adventure with financial markets began at the Cracow University of Economics, where he obtained his MA in finance and accounting. Starting from the retail trader perspective, he collaborated with brokerage houses and financial portals in Poland as an independent editor and content manager. His adventure with Finance Magnates began in 2016, where he is working as a business intelligence analyst.
Kraken Argues Cryptos Are Not “Illegal Securities”: Seeks Jury Trial against SEC Lawsuit
Transformation in the APAC Trading Landscape and Beyond | FMPS:24
Transformation in the APAC Trading Landscape and Beyond | FMPS:24
As the financial services industry experiences rapid and transformative changes, leading fintech experts and policymakers come together to discuss the present and future of retail trading and the evolving regulatory landscape. Join this insightful session for a forward-looking perspective on the trends, innovations, and trader needs that are shaping the future of offerings on a global scale.
Speakers:
Eric Blewitt, CEO, Investment Trends
Rhys Bollen, Senior Executive Leader, Digital Assets, Australian Securities and Investments Commission (ASIC)
Michael Bogoevski, Head of Institutional Sales, CMC Connect
Karin Setchell, General Manager, Product & Investing Solutions, CommSec
#fmps #fmps24 #fmevents #RetailTrading #FintechInnovation #FinancialRegulation #DigitalAssets #GlobalFinance
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As the financial services industry experiences rapid and transformative changes, leading fintech experts and policymakers come together to discuss the present and future of retail trading and the evolving regulatory landscape. Join this insightful session for a forward-looking perspective on the trends, innovations, and trader needs that are shaping the future of offerings on a global scale.
Speakers:
Eric Blewitt, CEO, Investment Trends
Rhys Bollen, Senior Executive Leader, Digital Assets, Australian Securities and Investments Commission (ASIC)
Michael Bogoevski, Head of Institutional Sales, CMC Connect
Karin Setchell, General Manager, Product & Investing Solutions, CommSec
#fmps #fmps24 #fmevents #RetailTrading #FintechInnovation #FinancialRegulation #DigitalAssets #GlobalFinance
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates.
Connect with us today:
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Executive Interviews with Joe Li & Simon Naish | ATFX | FMPS:24
Executive Interviews with Joe Li & Simon Naish | ATFX | FMPS:24
In this Finance Magnates Executive Interview, Joe Li, Chairman at ATFX and Simon Naish, Country Head of Australia at ATFX Connect, discuss ATFX’s strategic growth in the APAC region, particularly focusing on their institutional arm, ATFX Connect. They highlight the importance of Australia as a strategic hub, the challenges of operating in a highly competitive and regulated market, and their plans for regional expansion across APAC. The conversation touches on the integration of advanced technology and multi-asset offerings, the significance of optimal execution tools, and the importance of tailoring solutions to meet the sophisticated demands of institutional clients. They also emphasize their strong regulatory compliance and their commitment to enhancing client experience through innovative tools and infrastructure.
#fmps #fmps24 #fmevents #ATFXConnect #APACFinance #InstitutionalTrading #FinancialTechnology #MarketExpansion
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates.
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In this Finance Magnates Executive Interview, Joe Li, Chairman at ATFX and Simon Naish, Country Head of Australia at ATFX Connect, discuss ATFX’s strategic growth in the APAC region, particularly focusing on their institutional arm, ATFX Connect. They highlight the importance of Australia as a strategic hub, the challenges of operating in a highly competitive and regulated market, and their plans for regional expansion across APAC. The conversation touches on the integration of advanced technology and multi-asset offerings, the significance of optimal execution tools, and the importance of tailoring solutions to meet the sophisticated demands of institutional clients. They also emphasize their strong regulatory compliance and their commitment to enhancing client experience through innovative tools and infrastructure.
#fmps #fmps24 #fmevents #ATFXConnect #APACFinance #InstitutionalTrading #FinancialTechnology #MarketExpansion
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates.
Connect with us today:
🔗 LinkedIn: https://www.linkedin.com/showcase/financemagnates-events/
👍 Facebook: https://www.facebook.com/FinanceMagnatesEvents
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Ready to Scale? Regtech in Australia, A Global View | FMPS:24
Ready to Scale? Regtech in Australia, A Global View | FMPS:24
In the effort to elevate Australian fintech on the global stage, RegTech presents a unique and compelling case. Despite the increasing demand for robust compliance solutions, Australia's RegTech sector—ranked third-largest globally—remains underfunded. Join this insightful fireside chat to explore the future of Australia’s RegTech hub and its global potential.
Key discussion points include uncovering the hidden opportunities in RegTech that VCs are overlooking, the necessary steps for increased governmental support, the readiness of the local ecosystem to collaborate across global regulatory regimes, and lessons learned from other leading fintech hubs around the world.
Speakers:
Dickie Currer, National Lead, Tech Australia Advocates
Deborah Young, CEO, The RegTech Association
#fmps #fmps24 #fmevents #RegTech #Fintech #AustralianFintech #GlobalCompliance #TechInnovation
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In the effort to elevate Australian fintech on the global stage, RegTech presents a unique and compelling case. Despite the increasing demand for robust compliance solutions, Australia's RegTech sector—ranked third-largest globally—remains underfunded. Join this insightful fireside chat to explore the future of Australia’s RegTech hub and its global potential.
Key discussion points include uncovering the hidden opportunities in RegTech that VCs are overlooking, the necessary steps for increased governmental support, the readiness of the local ecosystem to collaborate across global regulatory regimes, and lessons learned from other leading fintech hubs around the world.
Speakers:
Dickie Currer, National Lead, Tech Australia Advocates
Deborah Young, CEO, The RegTech Association
#fmps #fmps24 #fmevents #RegTech #Fintech #AustralianFintech #GlobalCompliance #TechInnovation
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates.
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Resilience in Trading: From Third Class To World Class | FMPS:24
Resilience in Trading: From Third Class To World Class | FMPS:24
Join Mario Singh, Founder and Chairman of Fullerton Markets, as he shares his life story, highlighting the traits that were required starting without financial knowledge to become a financial and trading expert recognised by world-renowned media like CNBC & Bloomberg.
#fmps #fmps24 #fmevents #trading #onlinetrading #tradingexpert #tradingjourney
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Join Mario Singh, Founder and Chairman of Fullerton Markets, as he shares his life story, highlighting the traits that were required starting without financial knowledge to become a financial and trading expert recognised by world-renowned media like CNBC & Bloomberg.
#fmps #fmps24 #fmevents #trading #onlinetrading #tradingexpert #tradingjourney
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IBs and Brokers: The Good, The Bad, The Ugly | FMPS:24
IBs and Brokers: The Good, The Bad, The Ugly | FMPS:24
For most brokers, IBs and trading educators are invaluable partners, driving highly targeted traffic from key regions. However, without proper management, these relationships can quickly turn sour. In this session, gain an insider’s perspective on the types of licenses IBs need in APAC, the crucial details in IB agreements that both parties must scrutinize, common disputes between IBs and brokers and effective resolutions, and the pros and cons of transitioning from IB to broker.
Speakers:
Melody Gao, Senior Lawyer, Sophie Grace
James Perry-Keene, Head of Strategic Partnerships, Pepperstone
Christopher Balanzategui, CEO, N3tworx
#fmps #fmps24 #fmevents #IBAgreements #BrokerPartnerships #TradingIndustry #APACFinance #FinancialRegulation
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For most brokers, IBs and trading educators are invaluable partners, driving highly targeted traffic from key regions. However, without proper management, these relationships can quickly turn sour. In this session, gain an insider’s perspective on the types of licenses IBs need in APAC, the crucial details in IB agreements that both parties must scrutinize, common disputes between IBs and brokers and effective resolutions, and the pros and cons of transitioning from IB to broker.
Speakers:
Melody Gao, Senior Lawyer, Sophie Grace
James Perry-Keene, Head of Strategic Partnerships, Pepperstone
Christopher Balanzategui, CEO, N3tworx
#fmps #fmps24 #fmevents #IBAgreements #BrokerPartnerships #TradingIndustry #APACFinance #FinancialRegulation
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