🤖 “AI Boom Could Boost Bitcoin Mining”

The rapid growth of AI data centers could unexpectedly benefit Bitcoin mining. Both industries compete fiercely for cheap energy, and the increased demand from AI could limit the number of new mining operations. This could stabilize or even increase hashprice, a crucial metric for miners' revenue.

However, Jaran Mellerud, mining analyst and co-founder of Hashlabs Mining, offers a different perspective. He believes the competition for energy might simply drive miners to regions with less AI activity, such as Africa and Southeast Asia. While this could shift the mining landscape, it's unlikely to impact hashprice in the long run significantly.

Ultimately, the finite supply of cheap electricity may be the most significant factor influencing both industries. While the competition for energy could slow down hashrate growth, it's unlikely to halt it completely.

📈 Bernstein Predict Bitcoin Could Reach $200,000 in 2025

They cite several catalysts for this bullish forecast, including:

1. Pro-Crypto Regulatory Environment:

   • Key Appointments: The potential appointment of pro-crypto individuals to key government positions, such as the SEC Chair and Treasury Secretary, could significantly impact the regulatory landscape for cryptocurrencies.

   • Favorable Policies: A more favorable regulatory environment, including relaxed regulations on cryptocurrencies, could attract more institutional investors and boost Bitcoin's adoption.

2. National Bitcoin Reserve:

   • Government Backing: The establishment of a national bitcoin reserve, as proposed by some policymakers, would signify government recognition and potentially lead to significant institutional buying.

3. Institutional Adoption and Demand:

   • Growing Interest: Institutional investors, such as hedge funds and pension funds, are increasingly recognizing the potential of Bitcoin as a valuable asset class.

   • Bitcoin ETFs: The growing popularity of Bitcoin ETFs has made it easier for institutional investors to gain exposure to Bitcoin.

   • Corporate Adoption: Companies like MicroStrategy are aggressively accumulating Bitcoin, further driving demand.

4. Market Dynamics and Technical Factors:

   • Limited Supply: Bitcoin's fixed supply cap of 21 million coins is a fundamental factor driving its value.

   • Network Effects: As Bitcoin's network grows and becomes more secure, its value proposition strengthens.

⛏️ In the News

• A New York judge ruled in favor of Greenidge Generation, allowing the cryptocurrency mining facility to continue operations, despite environmental concerns and state efforts to shut it down.

• MARA has priced an oversubscribed $850m offering of convertible senior notes due 2030. The proceeds will be used to acquire Bitcoin, repurchase existing convertible notes, and for general corporate purposes.

• Core Scientific and Port Muskogee are building a 100 MW HPC data center expected to generate significant economic benefits for the Muskogee area.

• Former online gambling company BIT Mining admitted to bribing Japanese officials to win a casino license and agreed to pay $10m in fines.

• Trump has nominated crypto-friendly Howard Lutnick to lead the U.S. Department of Commerce.

• The Russian government proposes a 15% tax on crypto income from trading and mining.

• DMG Blockchain purchased 5 MW of hydro miners, which will increase its hashrate to 2.1 EH/s by early 2025.

• HIVE Digital Technologies is buying 5,000 new miners to boost its mining capacity and efficiency by the end of 2025.

Q3 Update

🧑‍🌾 Bit Digital

• Bit Digital reported Q3 2024 revenue of $22.71m, a 96% YoY increase, driven by the launch of its HPC business.

• Revenue from mining decreased 11% YoY to $10.1m, while HPC revenue was $12.2m, up from zero the prior year. Adjusted EBITDA was -$21.8m, including a $21.9m unrealized loss on digital assets.

• The company earned 165.4 BTC, a 59% decrease YoY, attributed to the April 2024 Bitcoin halving and increased network difficulty, offset by a 104% rise in operational hashrate.

• Treasury holdings included 731.1 BTC and 27,388.1 ETH, with a combined fair market value of approximately $118m.

• Operating hashrate was 2.4 EH/s with a fleet efficiency of 27.8 J/TH; 88% of electricity used was carbon-free.

• The company had 50,044 miners in operation, primarily in Iceland, with a total capacity of 4.3 EH/s. They purchased 42 H200 GPU servers for $9.7m and deployed them in Iceland.

• Bit Digital's electricity cost was $0.057 per kWh during the quarter.

• Signed a Master Service and Lease Agreement with Boosteroid for up to 50,000 GPU servers over five years, representing a potential $700m revenue opportunity.

• Acquired Enovum Data Centers for approximately $45.84m, including a 4MW Tier 3 facility in Montreal with plans to expand capacity to 280MW.

• Funded the acquisition with $40.88m in cash and shares issued to key management who rolled over ownership in Enovum.