After making a loss in 2022, miners in 2023 are taking advantage of AI's growing potential.
JPMorgan suggests that HPC services could be more profitable than BTC mining ever was.
A few years
ago, many publicly traded companies significantly transformed their business to
capitalize on the growing popularity of cryptocurrency mining. Now, as the
profitability of these operations becomes decidedly smaller, they are looking
for alternatives and moving towards a new boom. As a result, more miners are
beginning to offer access to substantial computing power from their data
centers to companies in the rapidly growing artificial intelligence (AI)
sector.
Miners Move from Bitcoin
to AI
According
to the latest report by JPMorgan published last week, the largest mining
companies are no longer restricting themselves to mining Bitcoin (BTC) and
other cryptocurrencies. Additionally, they offer high-performance computing
(HPC) services in the AI industry. This industry is developing dynamically and
has an increasing demand for computing power.
Popular
brands in the Bitcoin mining industry, such as Riot Blockchain (RIOT) and Hive
Blockchain Technologies (HIVE), have even changed their names to emphasize the
diversification of their businesses. RIOT is now Riot Platform, and HIVE is Hive
Digital Technologies. Cryptocurrencies mined and held as reserves have served
them in recent quarters to carry out new investments and adapt to a market
increasingly driven by the AI craze.
Ethereum
(ETH) miners who used graphics processing units (GPUs) to mine this
cryptocurrency will also benefit. These rigs became useless after the Ethereum
network update and the shift from the energy-consuming mining model to the
staking model. However, now they may find a second life.
"With
the rapid growth of AI, the increased demand for high-performance computing is
now opening a new and perhaps more profitable avenue for utilizing GPUs
previously used for ether mining," JPMorgan commented in the research.
In June,
another digital asset miner, Iris Energy, announced plans to move towards AI.
The shift to AI seems like a natural evolution, especially after a weak 2022.
Last year, the global mining industry generated $6 billion less revenue than in
the record-setting 2021.
HPC More Profitable than
Crypto Mining
The JPMorgan report suggests that if the results from the beta tests are
confirmed in reality on a larger scale, providing HPC services to the AI
industry could be much more profitable than mining Bitcoins.
"If
the profitability reported in beta tests is able to be repeated on a large
scale, it will overshadow the revenues coming from Bitcoin mining at the
moment," the report added.
Miners are
increasingly switching from Bitcoin to HPC and changing locations for service
provision. Russia is becoming increasingly popular, having significant energy
surpluses since its aggression towards Ukraine began. Currently, the Russian
Federation offers some of the cheapest energy for companies in the digital
asset mining sector.
For
publicly listed mining companies, it could be a chance to improve results,
which have not been positive recently. Riot Platforms Inc. and Galaxy Digital
Holdings Ltd. reported negative financial results in the last quarter. Moreover,
the mining companies' stocks have lost heavily from their 2021 peaks through low
Bitcoin prices and a growing number of hacks.
A few years
ago, many publicly traded companies significantly transformed their business to
capitalize on the growing popularity of cryptocurrency mining. Now, as the
profitability of these operations becomes decidedly smaller, they are looking
for alternatives and moving towards a new boom. As a result, more miners are
beginning to offer access to substantial computing power from their data
centers to companies in the rapidly growing artificial intelligence (AI)
sector.
Miners Move from Bitcoin
to AI
According
to the latest report by JPMorgan published last week, the largest mining
companies are no longer restricting themselves to mining Bitcoin (BTC) and
other cryptocurrencies. Additionally, they offer high-performance computing
(HPC) services in the AI industry. This industry is developing dynamically and
has an increasing demand for computing power.
Popular
brands in the Bitcoin mining industry, such as Riot Blockchain (RIOT) and Hive
Blockchain Technologies (HIVE), have even changed their names to emphasize the
diversification of their businesses. RIOT is now Riot Platform, and HIVE is Hive
Digital Technologies. Cryptocurrencies mined and held as reserves have served
them in recent quarters to carry out new investments and adapt to a market
increasingly driven by the AI craze.
Ethereum
(ETH) miners who used graphics processing units (GPUs) to mine this
cryptocurrency will also benefit. These rigs became useless after the Ethereum
network update and the shift from the energy-consuming mining model to the
staking model. However, now they may find a second life.
"With
the rapid growth of AI, the increased demand for high-performance computing is
now opening a new and perhaps more profitable avenue for utilizing GPUs
previously used for ether mining," JPMorgan commented in the research.
In June,
another digital asset miner, Iris Energy, announced plans to move towards AI.
The shift to AI seems like a natural evolution, especially after a weak 2022.
Last year, the global mining industry generated $6 billion less revenue than in
the record-setting 2021.
HPC More Profitable than
Crypto Mining
The JPMorgan report suggests that if the results from the beta tests are
confirmed in reality on a larger scale, providing HPC services to the AI
industry could be much more profitable than mining Bitcoins.
"If
the profitability reported in beta tests is able to be repeated on a large
scale, it will overshadow the revenues coming from Bitcoin mining at the
moment," the report added.
Miners are
increasingly switching from Bitcoin to HPC and changing locations for service
provision. Russia is becoming increasingly popular, having significant energy
surpluses since its aggression towards Ukraine began. Currently, the Russian
Federation offers some of the cheapest energy for companies in the digital
asset mining sector.
For
publicly listed mining companies, it could be a chance to improve results,
which have not been positive recently. Riot Platforms Inc. and Galaxy Digital
Holdings Ltd. reported negative financial results in the last quarter. Moreover,
the mining companies' stocks have lost heavily from their 2021 peaks through low
Bitcoin prices and a growing number of hacks.
Damian's adventure with financial markets began at the Cracow University of Economics, where he obtained his MA in finance and accounting. Starting from the retail trader perspective, he collaborated with brokerage houses and financial portals in Poland as an independent editor and content manager. His adventure with Finance Magnates began in 2016, where he is working as a business intelligence analyst.
Get ready to mark your calendars for FMAS:24, returning this May! Take a quick glimpse of what awaits at the Sandton Convention Centre in Sandton, South Africa from May 20-22, 2024.
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Get ready to mark your calendars for FMAS:24, returning this May! Take a quick glimpse of what awaits at the Sandton Convention Centre in Sandton, South Africa from May 20-22, 2024.
Don't miss out on this 5-second invite packed with energy and urgency!
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates. Connect with us today:
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Here's a sneak peek into the FMAS:24 vibrant atmosphere! Join us at Africa’s premium financial event for a transformative experience that combines the best of finance and technology.
From May 20-22, 2024, the Sandton Convention Centre in Sandton, South Africa, will be the hub for over 3,500 attendees to engage in unparalleled networking opportunities, learn from over 150 industry-leading speakers, and explore innovations from 120+ exhibitors.
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates. Connect with us today:
🔗 LinkedIn: https://www.linkedin.com/showcase/financemagnates-events/
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Don't miss out on our latest videos, interviews, and event coverage. Subscribe to our YouTube channel for more!
Here's a sneak peek into the FMAS:24 vibrant atmosphere! Join us at Africa’s premium financial event for a transformative experience that combines the best of finance and technology.
From May 20-22, 2024, the Sandton Convention Centre in Sandton, South Africa, will be the hub for over 3,500 attendees to engage in unparalleled networking opportunities, learn from over 150 industry-leading speakers, and explore innovations from 120+ exhibitors.
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
📣 Stay updated with the latest in finance and trading!
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Join 3500+ Attendees at FMAS:24 | Africa's Premium Financial Event
Join 3500+ Attendees at FMAS:24 | Africa's Premium Financial Event
Looking to expand your network in #Africa? Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
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Looking to expand your network in #Africa? Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
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Join 3500+ Attendees at FMAS:24 - Africa's Premium Financial Event
Join 3500+ Attendees at FMAS:24 - Africa's Premium Financial Event
Looking to expand your network in #Africa?
Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
Looking to expand your network in #Africa?
Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
Where the Prop Trading Industry Goes from Here | Finance Magnates Podcast
Where the Prop Trading Industry Goes from Here | Finance Magnates Podcast
Explore the tumultuous world of prop trading in this Finance Magnates podcast episode, featuring insights from Head of Axi Select, Greg Rubin.
We're discussing the challenges and shifts caused by MetaQuotes' pivotal decisions affecting MT4 and MT5 users, and how Axi Select offers a unique, realistic path to professional trading, steering clear of traditional prop firm pitfalls.
Tune in for expert analysis on the future of trading and innovative funding models.
The Axi Select programme is only available to clients of AxiTrader Limited. CFDs carry a high risk of investment loss. In our dealings with you, we will act as a principal counterparty to all of your positions. This content is not available for AU, NZ, EU and UK residents. For more information, refer to our Terms of Service. Standard trading fees apply.
This content is provided solely for general informational purposes and should not be construed as financial product advice or an investment recommendation. It has been prepared without considering your personal circumstances.
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Explore the tumultuous world of prop trading in this Finance Magnates podcast episode, featuring insights from Head of Axi Select, Greg Rubin.
We're discussing the challenges and shifts caused by MetaQuotes' pivotal decisions affecting MT4 and MT5 users, and how Axi Select offers a unique, realistic path to professional trading, steering clear of traditional prop firm pitfalls.
Tune in for expert analysis on the future of trading and innovative funding models.
The Axi Select programme is only available to clients of AxiTrader Limited. CFDs carry a high risk of investment loss. In our dealings with you, we will act as a principal counterparty to all of your positions. This content is not available for AU, NZ, EU and UK residents. For more information, refer to our Terms of Service. Standard trading fees apply.
This content is provided solely for general informational purposes and should not be construed as financial product advice or an investment recommendation. It has been prepared without considering your personal circumstances.
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