While Bitcoin miner stocks were a fantastic investment during the 2021 bull run, they are now a huge disappointment. Bitcoin achieved a return of more than 100% in 2024, while many miners are even left in the red.
How is that possible?
This is possible because miners are not solely dependent on the Bitcoin price.
Of course, they need a higher Bitcoin price to even record good numbers. But they also have to get their affairs in order themselves.
This means that miners must ensure that their operating costs are as low as possible. They have to pay little for electricity and spend as little money as possible to mine Bitcoin.
And that turns out to be very difficult. Especially because of the Bitcoin halving, which halves turnover from one day to the next. It turns out that this shock is difficult to manage for many companies.
Even if everyone knows that the halving is coming.
Miners are switching to artificial intelligence
To spread their risks, we see that many miners are now switching to artificial intelligence.
By leasing their computing power to parties that do something with artificial intelligence, they can build a certain degree of certainty into their financial situation, which ensures more predictability.
In other words: there now appears to be an alternative to Bitcoin mining.
If mining Bitcoin becomes relatively expensive, miners can always switch to artificial intelligence with some of their computing power. A major Bitcoin miner that is now doing a lot with AI is Core Scientific.
They have entered into a partnership with CoreWeave that should generate up to $8.7 billion in sales for the company over the next 12 years. In that respect, it is not about small collaborations.
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Source: https://newsbit.nl/aandelen-van-bitcoin-miners-presteren-dramatisch-in-2024/
