fromcrypto – Miners are more and more trying to diversify into AI knowledge facilities as a method to construct sustainable enterprise fashions and entice institutional buyers, in keeping with a notice from Bernstein on Monday.
Analysts have listed a number of main miners similar to Marathon Digital (NASDAQ: ) and Core Scientific Inc (NASDAQ: ), have just lately secured an honest quantity of financing via convertible notes, with every firm taking its personal distinctive method.
Marathon Digital has raised $300 million with plans to purchase extra bitcoins, following the lead of MicroStrategy, which pioneered the usage of long-term convertible notes to amass the native cryptocurrency as a company treasury asset.
Marathon's bonds had been priced at a 25% premium and a 2.125% coupon, due in 2031. In the meantime, Core Scientific secured $400 million at 3% curiosity over 5 years with the intention of paying down high-cost debt and buying AI-focused knowledge facilities.
Bernstein says the capital markets' response highlights the rising divide between bitcoin miners. Some stay dedicated to Bitcoin mining, whereas others give attention to AI knowledge facilities. This second method, generally known as the “Mullet Technique,” places AI knowledge facilities within the highlight whereas Bitcoin mining runs within the background.
“Ought to All Bitcoin Miners Transfer to AI Information Facilities?” the notice asks, citing sturdy curiosity from institutional buyers in miners adopting AI/HPC (Excessive-Efficiency Computing) methods.
Bernstein means that this shift may present a extra sustainable financial mannequin for miners, particularly because the AI business continues to draw main funding.
The report additionally identified that US-listed bitcoin miners with entry to the deepest capital markets on the earth have a pure benefit over their unlisted and non-US counterparts.
“This confirms our longstanding bias towards US Bitcoin miners who’re market consolidators,” the notice stated.
Bernstein analysts additionally touched on the upcoming US election, noting that polymarket traits present an in depth race between Trump and Harris.
Uncertainty surrounding the election is protecting Bitcoin and crypto markets in a decent vary. Bernstein reiterated his view {that a} Republican victory, particularly Trump, would possible be seen as a constructive for the crypto market.
