New York, USA – Bitcoin miners in the state are turning to AI technology as a way to generate additional revenue in the face of decreasing mining income. The recent halving event in April saw a drastic reduction in miners’ block rewards, cutting their revenue by half. As a result, miners are exploring new avenues to supplement their income.
Core Scientific, a prominent Bitcoin miner, is among those embracing AI to diversify their revenue streams post-halving. The shift towards AI has been fueled by the success of models like OpenAI’s ChatGPT, which have proven to be lucrative for miners like Bit Digital, Hut 8, and Hive.
According to reports, Bit Digital now derives 27% of its revenue from AI, while Hut 8 and Hive generate 6% and 4% of their revenue from AI, respectively. Core Scientific’s CEO, Adam Sullivan, believes that the move to AI will not only bring in higher rewards but also create a more stable business model with predictable cash flows.
Despite the potential benefits of diversifying into AI, some Bitcoin miners are reportedly facing challenges that have led to possible capitulations. A recent analysis found a significant drop in Bitcoin’s network hashrate, signaling possible exits by less efficient miners.
The persistent spikes in Hash Ribbons, which track Bitcoin’s hashrate moving averages, further indicate a decline in mining activity. This trend has led some to interpret the current situation as a potential buy signal for Bitcoin, as institutional traders are reportedly turning ‘risk-on’ and increasing their buying activity.
As the debate continues over the future of Bitcoin mining and the industry’s resilience amid changing market conditions, miners are looking for innovative solutions to maintain profitability. The convergence of AI technology with traditional mining practices represents a new frontier in the ever-evolving landscape of cryptocurrency mining.