MARA Leads Diversification: Bitcoin Miners Integrating AI and HPC for Long-Term Growth, Says Macquarie
The post MARA Leads Diversification: Bitcoin Miners Integrating AI and HPC for Long-Term Growth, Says Macquarie appeared on BitcoinEthereumNews.com.
The bitcoin mining industry is undergoing significant transformation, with several leading companies expanding their operations beyond cryptocurrency to include AI and high-performance computing (HPC) models. This diversification surged following Bitcoin’s fourth halving in April, as noted by Macquarie analysts Paul Golding and Emma Liang. “Our unique access to power creates opportunities for diversifying into non-crypto hosting,” analysts at Macquarie commented, highlighting the sector’s evolving dynamics. Discover the shifting landscape of bitcoin mining and how top players are evolving to include AI and HPC models. Bitcoin Miners Transitioning to AI and HPC Bitcoin miners are diversifying their business models to host AI and HPC infrastructure, enabling them to leverage their robust power and compute capabilities. This trend, particularly accelerated after Bitcoin’s fourth halving, is driven by the continuous search for new revenue streams and better business sustainability. Companies like MARA, Riot Platforms, Core Scientific, CleanSpark, and Cipher Mining are leading in this transformation. Macquarie’s Insight on Operational Strategies Analysts from Macquarie, Paul Golding, and Emma Liang, note that while some miners see the integration of AI and HPC as a valuable diversification, others view it as a potential distraction from their primary focus on amassing Bitcoin. Regardless, the growth in mining capacity and acquisition of land and GPUs for HPC and AI is often funded through dilutive equity issuance. Individual Company Performance and Prospects Macquarie’s analysis highlights significant potential in the AI and HPC hosting market for bitcoin miners. For instance, MARA stands out with the largest deployed capacity, securing a price target of $22 despite current share prices around $16.16. Riot Platforms, with its advanced cooling technologies and scaled sites, targets $15 per share. Core Scientific is notable for its scaled HPC/AI hosting deal, positioning it uniquely in the market with a $16 price target. The Financial Outlook and Future…
Filed under: News - @ September 25, 2024 11:16 pm