Bitcoin miners take into account AI pivot amid capital raises: Bernstein

starcrypto – miners are more and more trying to diversify into AI information facilities as a method to construct sustainable enterprise fashions and appeal to institutional traders, in response to a Monday word from Bernstein. 

The analysts mentioned a number of main miners, like Marathon Digital (NASDAQ:) and Core Scientific Inc (NASDAQ:), have not too long ago secured respectable funding by way of convertible notes, with every firm following its personal distinctive strategy. 

Marathon Digital raised $300 million with plans to purchase extra Bitcoin, following the lead of MicroStrategy, which has pioneered utilizing long-term convertible notes to accumulate the unique cryptocurrency as a company treasury asset. 

Marathon’s notes had been priced with a 25% premium and a 2.125% coupon, maturing in 2031. In the meantime, Core Scientific secured $400 million with a 3% rate of interest over a five-year time period, aspiring to repay high-cost debt and purchase AI-focused information facilities.

Bernstein argues that the capital markets’ response highlights a rising divide amongst Bitcoin miners. Some stay dedicated to Bitcoin mining, whereas others are pivoting in direction of AI information facilities. This latter strategy, often known as the “Mullet technique,” places AI information facilities within the highlight whereas holding Bitcoin mining operating within the background.

“Ought to all Bitcoin miners transition to AI information facilities?” the word asks, citing sturdy curiosity from institutional traders in miners adopting AI/HPC (Excessive-Efficiency Computing) methods. 

Bernstein means that this shift might present miners with a extra sustainable financial mannequin, notably because the AI business continues to attract massive investments.

The report additionally identified that U.S.-listed Bitcoin miners, with entry to the world’s deepest capital markets, have a pure benefit over their unlisted and non-U.S. counterparts. 

“This validates our lengthy bias in direction of U.S. listed Bitcoin miners being market consolidators,” the word mentioned.

Bernstein analysts additionally touched on the upcoming U.S. elections, noting that Polymarket developments are displaying an in depth race between Trump and Harris. 

The uncertainty across the election is holding Bitcoin and crypto markets range-bound. Bernstein reaffirmed its view {that a} Republican victory, particularly by Trump, would seemingly be seen as a optimistic for the crypto market.