currencyjournals – Mining firms are more and more contemplating diversifying into AI knowledge facilities as a technique to construct sustainable enterprise fashions and appeal to institutional traders, in response to a Monday notice from Bernstein.
Analysts are additionally taking a look at Marathon Digital (NASDAQ: Core Scientific Inc. (NASDAQ:) lately secured a bit of funding via convertible debt, with every firm taking its personal strategy.
Marathon Digital has raised $300 million with plans to purchase extra Bitcoin, following within the footsteps of MicroStrategy, a pioneer in utilizing long-term convertible notes to accumulate the unique cryptocurrency as a company treasury asset.
Marathon's notes have been priced at a 25% premium and a 2.125% coupon and mature in 2031. In the meantime, Core Scientific secured $400 million over 5 years at a 3% rate of interest to pay down high-cost debt and purchase AI-focused knowledge facilities.
Bernstein argues that the capital market response highlights a rising divide amongst bitcoin miners, with some persevering with to concentrate on bitcoin mining whereas others pivot to AI knowledge facilities. This latter strategy, known as the “Mallet Technique,” places the highlight on AI knowledge facilities whereas conserving bitcoin mining working within the background.
“Ought to all Bitcoin miners transfer to AI knowledge facilities?” the memo asks, citing sturdy institutional curiosity in miners that make use of AI/HPC (excessive efficiency computing) methods.
Bernstein means that the change might present mining firms with a extra sustainable financial mannequin, particularly because the AI trade continues to draw important funding.
The report additionally famous that U.S.-listed bitcoin miners, with entry to the world's deepest capital markets, have a pure benefit over unlisted and non-U.S. miners.
“This confirms our long-held bias that U.S.-listed bitcoin miners will probably be market consolidators,” the notice stated.
Bernstein analysts additionally touched on the upcoming US election, noting that poly market exercise means that Trump and Harris are in a detailed race.
Uncertainty surrounding the election has saved Bitcoin and the cryptocurrency market range-bound, and Bernstein reiterated his view {that a} Republican victory, significantly for Trump, would probably be considered as a constructive for the cryptocurrency market.
