Bitcoin

Struggling Bitcoin Miners Seek Deals with AI Firms

Published

6 months ago

17 July, 2024

Struggling Bitcoin Miners Seek Deals with AI Firms

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Bitcoin miners are rushing to sign deals with artificial intelligence developers in a bid to revive their dwindling revenues by finding new customers for their vast data centers.

Cryptocurrency miners run powerful computing sites, often covering acres of land, where they solve complex mathematical puzzles to authenticate transactions and produce digital coins. But with high energy and computing costs, and mining rewards having recently halved, many are struggling to turn a profit.

They are now hoping to benefit from a surge in demand for powerful but scarce chips — known as graphics processing units, or GPUs — that are used in both cryptocurrency mining and AI processing. Tech companies are racing to gain access to GPUs from chipmaker giant Nvidia as they try to build more capable AI systems, and they are increasingly making deals to let them use miners’ chips or put their own chips in miners’ data centers.

Core Scientific, one of the world’s largest bitcoin miners, is “aggressively pursuing” AI deals, Chief Executive Adam Sullivan told the Financial Times. “It’s an incredibly important part of the business,” he added.

The Nasdaq-listed mining company, which has data centers in Texas, North Carolina and Georgia, struck a deal with AI cloud provider CoreWeave last month that the companies estimate will be worth $4.7 billion in revenue over 12 years. Nvidia-backed CoreWeave — itself a former cryptocurrency miner that pivoted to AI for several years and saw its valuation jump to $19 billion in May — will use Core Scientific’s data centers to host its AI chips.

AI companies require a lot of computing power and infrastructure, two things that bitcoin miners typically have access to. AI groups are betting that using miners’ high-performance computing (HPC) data centers will be faster and cheaper than building their own.

Major tech companies including Microsoft, Google and Amazon have said they plan to spend tens of billions of dollars to build out data center infrastructure to support their AI ambitions. Demand for AI capabilities has also fueled investor interest in new cloud startups such as CoreWeave and Lambda Labsthat focus on renting access to GPUs.

“This [normally] “It takes 3-5 years to build an HPC-class data center from scratch,” JPMorgan analysts wrote in a recent note, adding that this timeline has grown even longer due to increased demand for AI projects.

“This competition for energy puts a premium on companies with access to cheap energy today,” they added.

Other large bitcoin miners are using some of their data or processing power for AI.

American hedge fund Coatue Management, founded by “Tiger cub” fund manager Philippe Laffont, recently invested $150 million in Hut 8 to help the bitcoin mining company upgrade its infrastructure to meet the needs of AI companies. The mining company also recently created a new AI division.

Asher Genoot, chief executive of Hut 8, said the company — named after a building in Bletchley Park where mathematician Alan Turing worked during World War II — had focused on the “huge demand and growth in the data center segment, driven largely by AI demand.”

Bitcoin miners hope that shifting their strategy to AI will provide them with higher and more stable revenues.

Several miners, including Core Scientific, filed for bankruptcy in 2022 following the collapse of cryptocurrency exchange FTX and a drop in the price of bitcoin below $16,000.

While cryptocurrency prices have soared since then — bitcoin hit a record high above $73,800 in March and is now trading around $63,800 — the financial rewards they can earn from mining each new bitcoin block have been reduced over the four-year period. bitcoin halving event in April. The high cost of energy and technology also hit its profitability.

Canadian mining company Hive is also focusing on “growing revenue from its Nvidia GPU chip set that powers data services for the AI revolution,” the company said, while New York-based Bit Digital inked a three-year, $275 million deal in January to lease its data center space to a company building large language models.

“We understand that the halving was imminent and we felt that with margins being squeezed overnight by 50 percent, it doesn’t always make sense to rush in on the hope that bitcoin will go up, it’s simply not good business practice,” said Sam Tabar, Bit Digital’s chief executive.

“We are simply renting computing power to people who are building AI models, we are handling the hardware part of that,” he added.

However, the race to build new data centers is overloading the power grids in some parts of the world due to the huge power requirements of HPC. Bitcoin mining is also high energy intensityand both sectors were criticized due to the large amounts of energy they consume.

Google’s Greenhouse Gas Emissions increased by 48 percent over the past five years amid expansion of its data centers for AI processes, while bitcoin mining uses more energy than Pakistan or Ukraine annually, according to data from the University of Cambridge.

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Bitcoin

What to watch for in the markets

Published

6 months ago

21 July, 2024

SatoshiTimes Staff

Photo: Andrew Harnik (Getty Images)

After witnessing one of the largest global IT outages on record, affecting the travel, finance and healthcare sectors worldwideThis week is set to see more political drama, events, and earnings reports from tech giants.

Donald Trump’s ‘Lovefest’ Sets Jamie Dimon Up for Consideration for Treasury Secretary Job

Let’s take a look at what awaits us:

Major companies will release their earnings reports

Major tech companies and others will release their earnings reports this week, paving the way for what the second half of 2024 will look like.

Monday

Verizon will report earnings before the start of operations.

Tuesday

Coca-Cola, Comcast and UPS are all set to report earnings before the market opens.
Tesla will report earnings in the morning, while General Motors will report earnings in the evening.
Alphabet and Visa will report results after the market closes.

Wednesday

AT&T will release its report before the market opens.
Ford and Chipotle will report earnings after the market closes.

Thursday

Earnings reports from AstraZeneca, American Airlines and Southwest Airlines will be released before the market opens.

Trump to speak at Bitcoin conference

Presumptive Republican presidential nominee Donald Trump will speak at the next Bitcoin Conference in Nashville, Tennesseewhich is scheduled for July 25-27. While this is the first time a presidential candidate will attend the conference, it has sparked a debate over whether the crypto-friendly Trump will receive support from the crypto community in the upcoming election.

In addition to Trump, independent presidential candidate Robert F. Kennedy Jr. will also discuss crypto during the conference. Crypto advocates such as ARK Investment’s Cathie Wood, MicroStrategy’s Michael Saylor, and whistleblower Edward Snowden are among some prominent names who will be participating in the conference.

Ether ETFs are on the way

New Ether Spot ETFs are set to begin trading on Tuesday, July 23. Much like the spot Bitcoin ETFs, these ETFs will allow investors to buy the second most popular cryptocurrency like stocks. BlackRock, Ark Invest/21Shares, VanEck, Grayscale, Fidelity, Bitwise, Franklin Templeton, and Invesco/Galaxy Digital are all set to offer Ether ETFs. Crypto asset manager Bitwise predict that trading in the Ether ETF will drive the price of Ether higher, potentially surpassing $5,000.

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Bitcoin

Cryptocurrency’s Biggest Winners and Losers in a Second Trump Presidency

Published

6 months ago

21 July, 2024

SatoshiTimes Staff

Cryptocurrency’s Biggest Winners and Losers in a Second Trump Presidency

Bitcoin miners and cryptocurrency companies that have been blocked from going public in the U.S. could ultimately be the biggest winners in the digital asset world under a second Donald Trump presidency. Foreign companies at risk of losing market share could end up being the biggest losers.

That’s the view that’s taking hold among market participants and observers in the wake of the former president’s growing embrace of cryptocurrency as his chances of election grow. survey released Thursday by CBS News showed Trump with the majority — 52 percent — of likely voters in his likely November rematch with President Joe Biden.

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Bitcoin

Bitcoin, Ethereum, Solana and Cryptocurrency Markets Look Ready to ‘Send’ as Stars Align, According to Investor Chris Burniske

Published

6 months ago

21 July, 2024

SatoshiTimes Staff

Bitcoin, Ethereum, Solana and Cryptocurrency Markets Look Ready to ‘Send’ as Stars Align, According to Investor Chris Burniske

Cryptocurrency investor Chris Burniske says Bitcoin (BTC), Ethereum (ETH), Solana (SUN) and the cryptocurrency market in general seem poised for a run.

Former Head of Cryptocurrency at ARK Invest account his 292,200 followers on social media platform X that several catalysts are aligning, suggesting that digital asset markets are on the verge of a bull run.

According to Burniske, a partner at venture capital firm Placeholder, the highly anticipated launch of Ethereum-based exchange-traded funds (ETFs), Republican presidential candidate Donald Trump speaking at an upcoming Bitcoin event, and the current state of the BTC, ETH, and SOL charts all suggest significant optimism for the cryptocurrency markets.

“With ETH ETFs set to go live, Trump speaking at The Bitcoin Conference, and BTC, ETH, and SOL charts looking [they do] (while stocks are weak), it’s hard to imagine a world where we don’t ship next week.”

Reuters recently reported that preliminary approval for ETH ETFs has been granted as the Bitcoin Conference is scheduled to take place from July 25-27.

BTC, ETH, and SOL are trading at $67,333, $3,528, and $174 at the time of writing, respectively.

The venture capitalist too provides an update on his prediction that the total crypto market cap will eventually hit $10 trillion. According to his chart, the path to $10 trillion is currently “23%” complete, as it sits around $2.2 trillion.

Source: Chris BurniskeX

Earlier this month, Burniske he said in an interview with Real Vision CEO Raoul Paul that he has his eye on the Move ecosystem, which was originally built by social media giant Meta and then used to develop layer 1 blockchains Sui (IUE) and Apts (APT).

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Bitcoin

Here’s the next target for BTC before bulls can hold out for $70K

Published

6 months ago

21 July, 2024

SatoshiTimes Staff

Here’s the next target for BTC before bulls can hold out for $70K

Bitcoin’s recovery is going well, and the market is seemingly poised to create a new all-time high in the near term.

Technical analysis

Per NegotiationRage

The daily chart

As the daily chart shows, the price of Bitcoin has been rising since it broke above the 200-day moving average.

The market has also reclaimed the $60K and $65K levels and is moving towards the $68K resistance zone, which could be the last hurdle before creating a new all-time high. With the RSI also indicating that the price has clear bullish momentum, it could be just a matter of time.

Source: TradingView

The 4-hour chart

Looking at the 4-hour chart, it is evident that the price has been rising rapidly since breaking the downtrend line to the upside. The market also broke the $65K resistance level with momentum, turning it into a support.

While almost everything points to a new record high in the coming weeks, there is one worrying sign. The RSI is showing a clear bearish divergence between recent price highs, which could indicate a correction or even a reversal in the near term.

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Cryptocurrency Charts by TradingView.

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