How Bitcoin Miners Are Turning To Lucrative AI Stocks

The video discusses how Bitcoin miners are turning to lucrative AI stocks to meet the increasing energy demands of artificial intelligence applications. The partnership between Core Weave and Core Scientific, a leading Bitcoin miner in North America, has shown how Bitcoin miners can capitalize on their access to cheap power to host AI-related computing hardware in data centers, leading to new investment opportunities in the AI sector.

In the video, it is discussed how Bitcoin miners are turning to lucrative AI stocks due to the increasing demand for energy in the artificial intelligence world. For example, cloud computing provider Core Weave recently signed a $3.5 billion deal with Core Scientific, an Austin-based Bitcoin miner, to host AI-related computing hardware in their data centers. This partnership has led to Core Scientific’s stock doubling and being viewed as a new investment opportunity in the AI sector.

Core Scientific, one of the largest Bitcoin miners in North America, emerged from bankruptcy in January and is capitalizing on the soaring demand for heavy-duty computer capacity driven by AI applications such as chat GPT. The company’s access to cheap power in states like Texas and North Dakota has become a valuable asset in meeting the energy demands of AI-related computing. The importance of having sufficient power available is emphasized, as building high-performance computing data centers from scratch can take several years.

Following the announcement of the Core Weave contract, the market value of 14 US-listed Bitcoin miners surged by 22%, contrasting with a decline in Bitcoin and a rise in the S&P 500. These miners control a significant amount of power and have purchase agreements for additional energy from new power plants. The increasing energy demand from data centers due to the AI boom is projected to reach 9% of US power generation by 2030, doubling the current usage.

While Bitcoin purists may argue against hosting AI machines in Bitcoin mining data centers due to environmental concerns, smaller AI players without the same computing and power needs as hyperscalers could benefit from partnering with Bitcoin miners. This could lead to the development of hybrid data centers that cater to both Bitcoin mining and high-performance computing. Investors are showing interest in Bitcoin mining stocks, with the average Enterprise Value Revenue multiple of selected miners increasing over the past few months.

Overall, the video highlights the evolving relationship between Bitcoin mining and AI stocks, as Bitcoin miners leverage their access to cheap power to meet the growing energy demands of AI applications. The potential for hybrid data centers that cater to both Bitcoin mining and high-performance computing presents new investment opportunities in the AI sector. Investors and analysts are closely monitoring the developments in this space as the demand for energy-intensive computing continues to rise.