Artificial intelligence (AI) is becoming a significant focus for public bitcoin miners. What started as a gradual trend last year has now transformed into an essential business strategy.

Core Scientific, Bit Digital, Hut 8, Hive, and IREN are leading the way with AI business lines. Other companies like Crusoe Energy and Lancium, Cipher, and Terawulf are exploring or developing similar ventures. With commitments totaling $500 billion for AI development in the U.S., the role of bitcoin miners is evolving.

Kevin Dede from H.C. Wainwright believes both AI and traditional bitcoin mining can coexist. In a recent episode of the Mining Pod, Dede acknowledged the potential of miners pivoting to AI but emphasized that the original mining mandate remains viable.

Key Question

Does the launch of Project Stargate shift the AI narrative for bitcoin miners?

Dede warns that the CoreWeave deal significantly changed market dynamics. Smaller-scale implementations can also thrive as the electricity demand varies with shifting computational needs.

He highlights that Riot is pausing its Corsicana Phase 2 to analyze AI and high-performance compute (HPC) opportunities. With activist investments, Riot’s decision aligns with market demands and innovations in HPC technology.

Potential upsides exist for both Bit Digital and Core Scientific. Strong management and strategic acquisitions could lead to substantial HPC capacity, whereas traditional bitcoin mining factors into broader economic considerations—or potential price surges.

Ultimately, Dede believes there’s a pathway for bitcoin mining to remain relevant and potentially integrate with AI strategies, offering both steady revenue and the potential for greater profit margins.