tudies show that shifting 20% of mining capacity to AI/computing could generate $13.9B yearly by 2027, and Bitcoin miners now weigh transitioning excess energy to high-growth sectors
A new report from VanEck estimates that Bitcoin mining firms could bring in over $13 billion annually by partially transitioning their spare energy capacity to power artificial intelligence and high-performance computing companies.
Current Model Leaves Bitcoin Miners Vulnerable
VanEck noted Bitcoin miners tend to have poor balance sheets, weighed down by debt, dilution, and executive pay. With mining rewards halving every four years, revenue fluctuates greatly depending on Bitcoin's price and network difficulty. Providing power to AI and computing firms could diversify income.
Hybrid Model Could Produce $13.9B Yearly by 2027
The analysis found that reallocating just 20% of capacity could lead to average annual profits above $13.9 billion over 13 years. AI companies are eager to lock in long-term energy contracts to power their growing data centers.
Some miners like Core Scientific and Hive Digital Technologies are expanding into AI and computing services. Core Scientific recently signed a 12-year, $3.5 billion deal to supply infrastructure to AI firm CoreWeave.
Challenging Environment for Bitcoin Miners
The report comes as many Bitcoin mining companies face a squeeze on profits. Revenue fell nearly 10% year-over-year last quarter for Marathon Digital Holdings. Meanwhile, mining rewards were just cut in half again per the Bitcoin protocol.
While mining remains highly competitive, partial transitions to the AI sector could throw struggling firms a much-needed lifeline. With AI's voracious energy demands, Bitcoin miners hold an attractive resource in their excess power capacity.
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