Bitcoin Miners Upgrade Infrastructure, Embrace AI To Prepare For Dip In Revenue After Halving (CORRECTED)
Portfolio Pulse from Benzinga Neuro
Bitcoin miners are adopting artificial intelligence (AI) to counter the revenue dip expected from the recent halving event, which reduced the reward for mining new blocks. Companies like Core Scientific are investing in AI and new mining rigs to create alternative revenue streams. The industry anticipates a shift towards AI in locations with secure energy sources, with companies such as BitDigital, Hive, Hut 8, Terawulf, and Core Scientific leading the way. The halving has also led to a decrease in Bitcoin transaction fees to a five-year low, despite reducing miners' revenue by 50%.
April 22, 2024 | 4:50 am
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POSITIVE IMPACT
BitDigital is actively planning for AI expansion to mitigate the impact of Bitcoin halving on its revenue.
BitDigital's move towards AI and its active planning for AI expansion are strategic responses to the halving event, aiming to diversify revenue streams and reduce dependency on mining rewards.
CONFIDENCE 85
IMPORTANCE 75
RELEVANCE 80
POSITIVE IMPACT
Core Scientific is leading the charge in AI and mining innovation to create new revenue streams post-Bitcoin halving.
Core Scientific's investment in AI and new mining rigs, including the 4nm rigs and AI Cloud offerings, are direct responses to the halving event, aimed at mitigating its impact on revenue through diversification and innovation.
CONFIDENCE 90
IMPORTANCE 85
RELEVANCE 90
POSITIVE IMPACT
Hive is among the companies with existing AI operations or plans for AI expansion, aiming to offset the revenue impact from Bitcoin's halving.
Hive's engagement in AI operations and its plans for further expansion into AI are proactive measures to counteract the reduced mining rewards due to the halving, indicating a strategic pivot towards sustainable revenue sources.
CONFIDENCE 85
IMPORTANCE 75
RELEVANCE 80
POSITIVE IMPACT
Hut 8 is transitioning towards AI, seeking alternative revenue streams in response to the Bitcoin halving event.
Hut 8's move to incorporate AI into its operations is a strategic attempt to diversify its revenue streams beyond traditional mining, in light of the halving's impact on mining rewards.
CONFIDENCE 85
IMPORTANCE 75
RELEVANCE 80
POSITIVE IMPACT
Terawulf is planning AI expansion to mitigate the effects of the Bitcoin halving on its mining revenue.
Terawulf's initiative to expand into AI reflects a strategic move to counterbalance the decreased mining rewards due to the halving, aiming for revenue diversification and sustainability.
CONFIDENCE 85
IMPORTANCE 75
RELEVANCE 80