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Bitcoin Miners: Strategic Partners for AI Data Centers
Explore the symbiotic relationship between Bitcoin miners and AI data centers, highlighting how they collaborate strategically to optimize performance and efficiency in the digital landscape.
Bitcoin Miners as Partners for AI Data Centers
Bitcoin (BTC) miners are emerging as strategic partners for the development of artificial intelligence (AI) data centers, leveraging their robust power supplies and operational expertise, according to a recent report by broker Bernstein.
Recent AI Deals
Key recent deals in the AI sector, such as Core Scientific’s 12-year agreement with CoreWeave and Coatue Management’s $150 million investment in Hut 8 (HUT), have served as significant catalysts for this emerging trend.
Stock Recommendations
Bernstein has initiated coverage of miner Iris Energy (IREN) with an outperform rating and a $26 price target, and also started covering Core Scientific with an outperform rating and a $17 objective.
Market Insights
- Bitcoin miners currently control approximately 6 gigawatts (GW) of power access, with a projected pipeline of up to 12 GW by 2027.
- Miners are well-positioned in the power interconnect queue, enabling potential partners to expedite energy supply acquisition.
- Bitcoin data centers offer ideal infrastructure for retrofitting due to high power density racks and advanced cooling systems.
- An estimated 20% of bitcoin miners’ power capacity is anticipated to transition to AI applications by the end of 2027.
Industry Outlook
Bernstein predicts that the top five U.S. bitcoin miners will further consolidate their scale, potentially reaching around 25% of the global bitcoin hashrate. This consolidation could pave the way for a strategic shift towards AI initiatives in the medium term.
Bitcoin Price Forecast
The broker maintains a bullish outlook on Bitcoin, projecting the cryptocurrency to reach $200,000 by 2025, $500,000 by 2029, and surpass $1 million by 2033. The recent successful launch of spot bitcoin exchange-traded funds (ETFs) in the U.S. has bolstered Bernstein’s confidence in these forecasts.
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