Bitcoiners see charts of hash rate forever going up and to the right and it reinforces our belief that Bitcoin is strong and growing. On the other hand large industrial miners must see something different....
A decrease in revenue!
Enter AI.
at a bitcoin price of nearly $104,000, according to CoinWarz data for price and hashrate. The midpoint of that range, around 1.2 to 1.3 million dollars, trails the 1.85 million dollars per MW per year implied by TeraWulf’s AI contracts.
I haven't been paying much attention to large bitcoin miners, but had heard that some were diversifying into AI to mitigate risk. TBH the shift towards interest in AI didn't surprise me as a lot of these miners have always had fiat gains at heart.
Core Scientific’s additions with CoreWeave put a 12-year stamp on the model. CleanSpark’s 285 MW plan and Marathon’s Exaion purchase push miners toward owning and operating mixed-use campuses where GPUs, miners, and sometimes standard colocation can share infrastructure. Riot’s public evaluation of 600 MW at Corsicana demonstrates how quickly the mix can change when a site already has transformers, switchgear, water rights, and fiber infrastructure in place.
What will be interesting to see play out is if we get this big AI crash that all the influencers on YouTube are always talking about. If it brings Bitcoin down with it, these large miners could be in trouble.
On the bright side, we may see some cheap rigs going around when they go bust!
Further down the track, I do wonder if there is this huge race between countries to build out AGI, will it will take energy away from Bitcoin? And will AGI itself will want to destroy Bitcoin as it is taking energy away from it's performance?