Bernstein: Investors' Interest in Bitcoin Mining Companies Shifting to AI is Growing Stronger

ChainCatcher news, according to The Block, analysts from research and brokerage firm Bernstein pointed out that Bitcoin mining companies are shifting their focus to the artificial intelligence and high-performance computing (HPC) data center market, which has sparked strong interest from investors. Gautam Chhugani, Mahika Sapra, and Sanskar Chindalia wrote in a report to clients on Monday: "We see strong investor interest in Bitcoin mining companies pursuing AI/HPC, and these investors are also questioning whether all mining companies should pivot to AI."

This operational shift is referred to as the "Mullet" strategy: AI data centers at the front end, Bitcoin mining at the back end. The report on Monday stated that the current mining landscape is almost evenly split, with companies focused on Bitcoin mining and those transitioning to become AI data centers each accounting for half. This strategy may require mining companies to incorporate GPU-based AI-specific machines into their facilities, as ASIC mining machines are not suitable for AI training tasks. However, Bernstein's report noted that mining companies transitioning to focus on the AI data center market face specific challenges. While Bitcoin mining and AI data centers share similarities in power capacity and high-density power specifications, they have entirely different business models.

The analysts added: "Bitcoin mining companies pursue proprietary strategies for self-mining, engaging in the business of converting electricity into Bitcoin at costs below market prices. Therefore, the only thing that matters is increasing Bitcoin output/hash rate market share and a consistent financial strategy, which is not to sell Bitcoin at a loss." According to the report's perspective, leading Bitcoin mining companies should focus on Bitcoin mining market share, ensuring that hash rate growth outpaces the total hash rate, and not selling Bitcoin at a loss.