Investments in mining have been given a second life, but not in the way their owners expected.
Over the past year, many miners stopped mining Bitcoin. A market correction plus more expensive electricity, and the economics no longer added up.
At the same time, their earnings increased by about 2 times.
The reason is the same thing that reshapes everything: artificial intelligence.
Farm owners already have the most scarce assets on the market: power capacity, land, cooling, and ready-to-use grid connections. And electricity is the main shortage for AI companies. That’s why former Bitcoin mining farms are being converted into data centers and leased to major players under 10–20 year contracts, and the facility’s income from this roughly doubles.
Now, personal. For me, this story settles a dispute that has been going on for ten years. Blockchain as a “technology that will change everything” didn’t deliver: of all the promised revolutions, only one function remains—payments. And I’m saying this as someone who builds products in this field. And all the speculative capital moved to AI—everyone went crazy for it: from funds to owners of garage farms.
Over the past year, many miners stopped mining Bitcoin. A market correction plus more expensive electricity, and the economics no longer added up.
At the same time, their earnings increased by about 2 times.
The reason is the same thing that reshapes everything: artificial intelligence.
Farm owners already have the most scarce assets on the market: power capacity, land, cooling, and ready-to-use grid connections. And electricity is the main shortage for AI companies. That’s why former Bitcoin mining farms are being converted into data centers and leased to major players under 10–20 year contracts, and the facility’s income from this roughly doubles.
Now, personal. For me, this story settles a dispute that has been going on for ten years. Blockchain as a “technology that will change everything” didn’t deliver: of all the promised revolutions, only one function remains—payments. And I’m saying this as someone who builds products in this field. And all the speculative capital moved to AI—everyone went crazy for it: from funds to owners of garage farms.
