Bitcoin Miners' Pivot To AI Has Lifted Bitcoin-Mining ETF By About 90% This Year (wsj.com) 16
An anonymous reader quotes a report from the Wall Street Journal: It's harder than ever to mine bitcoin. And less profitable, too. But mining-company stocks are still flying, even with cryptocurrency prices in retreat. That's because these firms have something in common with the hottest investment theme on the planet: the massive, electricity-hungry data centers expected to power the artificial-intelligence boom. Some companies are figuring out how to remake themselves as vital suppliers to Alphabet, Amazon, Meta, Microsoft and other "hyperscalers" bent on AI dominance.
Bitcoin-mining -- using vast computer power to solve equations to unlock the digital currency -- has been a lucrative and cutting-edge pursuit in its own right. Lately, however, increased competition and other challenges have eroded profit margins. But just as the bitcoin-mining business began to cool, the AI build-out turned white hot. The AI arms race has created an insatiable demand for some assets the miners already have: data centers, cooling systems, land and hard-to-obtain contracts for electrical power -- all of which can be repurposed to train and power AI models.
It's not a seamless process. Miners often have to build new, specialized facilities, because running AI requires more-advanced cooling and network systems, as well as replacing bitcoin-mining computers with AI-focused graphics processing units. But signing deals with miners allows AI giants to expand faster and cheaper than starting new facilities from scratch. These companies still mine some bitcoin, but the transition gives miners a new source of deep-pocketed customers willing to commit to longer-term leases for their data centers.
"The opportunity for miners to convert to AI is one of the greatest opportunities I could possibly imagine," said Adam Sullivan, chief executive of Core Scientific, which has pivoted to AI data centers. The shift has boosted miners' stocks. The CoinShares Bitcoin Mining ETF has surged about 90% this year, a rally that has accelerated even as bitcoin erased its gains for 2025. The ETF holds shares of miners including Cipher Mining and IREN, both of which have surged following long-term deals with companies such as Amazon and Microsoft. Shares of Core Scientific quadrupled in 2024 after the company signed its first AI contract that February. The stock has gained 10% this year. The company now expects to exit bitcoin mining entirely by 2028.
Bitcoin-mining -- using vast computer power to solve equations to unlock the digital currency -- has been a lucrative and cutting-edge pursuit in its own right. Lately, however, increased competition and other challenges have eroded profit margins. But just as the bitcoin-mining business began to cool, the AI build-out turned white hot. The AI arms race has created an insatiable demand for some assets the miners already have: data centers, cooling systems, land and hard-to-obtain contracts for electrical power -- all of which can be repurposed to train and power AI models.
It's not a seamless process. Miners often have to build new, specialized facilities, because running AI requires more-advanced cooling and network systems, as well as replacing bitcoin-mining computers with AI-focused graphics processing units. But signing deals with miners allows AI giants to expand faster and cheaper than starting new facilities from scratch. These companies still mine some bitcoin, but the transition gives miners a new source of deep-pocketed customers willing to commit to longer-term leases for their data centers.
"The opportunity for miners to convert to AI is one of the greatest opportunities I could possibly imagine," said Adam Sullivan, chief executive of Core Scientific, which has pivoted to AI data centers. The shift has boosted miners' stocks. The CoinShares Bitcoin Mining ETF has surged about 90% this year, a rally that has accelerated even as bitcoin erased its gains for 2025. The ETF holds shares of miners including Cipher Mining and IREN, both of which have surged following long-term deals with companies such as Amazon and Microsoft. Shares of Core Scientific quadrupled in 2024 after the company signed its first AI contract that February. The stock has gained 10% this year. The company now expects to exit bitcoin mining entirely by 2028.
I think I know where they got the idea from (Score:3, Informative)
Captain Planet was supposed to be the good guy, it wasn't a guide on how to build pollution machines that almost literally print money.
Re: (Score:2)
But Doctor Blight was so much cooler than any of the Planeteers. Who wouldn't want to be a hot supergenius bioegneer?
Nice (Score:1)
Current Stage: The Great Grift (Score:1)
The grand master plan of crypto
The plan for all cryptocurrencies isn't what they want to make you think it is. It's more sinister than the egalitarian image the crypto boys portray for it.
After the 2008 financial meltdown, cryptocurrencies were born out of it, declared to be the means by which people could be freed from banks/governments, and promised to avoid any such future meltdowns from happening ever again.
But the crypto boys watched closely the result of that meltdown, and formulated their plan: c
Re: (Score:1)
Crapto? Who cares... (Score:4, Insightful)
The only real thing in that space is money-laundering and crime-financing. Ransomware would not be a thing without it. Time to shut it all down, or even better, put full financial regulation on it.
Re: (Score:2)
One of the time-honored lies: "Join our scam and you are fighting for freedumb! Stick it to the man right here for this small fee of xxx."
Yes, we do already know that "people who do not want totalitarianism" does not include you.
That just does mean you are completely clueless as to my stance or you are directly lying.
Re: (Score:2)
Yeah, here's a hint: people who actually oppose totalitarianism don't think freedom is dumb, you do.
Well, your reading comprehension and general insight is certainly atrocious. Here is a hint: Accusing people of things they are very much and obviously not doing just makes you look dumb.
Re: (Score:2)
Do remember that our totalitarian government considers drug users and drug dealers to be criminals...
Pablo Esobar had a right to peacefully consume cocaine.
We need bit coin, because the totalitarianism is the government...
See Trump vs Venezuela for an example.
stop it (Score:1)
Good (Score:2)
Instead of burning energy to brute-force hashes, they now produce something with a result. And instead of wanting to keep energy usage high (so the one with the cheapest energy prices dominates) they now are interested in optimizing efficiency (as they are selling FLOPs and more FLOPs/energy are better). This is a net benefit for energy use and environment.