Bitcoin miners face acquisition, AI capabilities crucial to valuation

The media outlet Decrypt published an article expressing concerns about the future development of mining companies. The article quotes opinions from various asset management firms and Bitcoin miners, discussing the market dynamics for mining post Bitcoin halving and the role of artificial intelligence in the industry.

After Bitcoin Halving, Small and Medium-sized Mining Companies Face Mergers and Acquisitions

Ryan Rasmussen, research director at asset management company Bitwise, used the acquisition of Block Mining by mining giant Riot Platform as an example to explain that "Bitcoin miners must go through this identity crisis in the initial months after the halving." "The halving of block rewards will have adverse effects," Rasmussen explained. "In the next 18 months, we expect consolidation in the Bitcoin mining industry as some well-capitalized miners look to acquire competitors."

Decrpt cited a report from CoinDesk, indicating that securities brokerage Benchmark has identified Bitdeer as a potential takeover target in the Bitcoin mining sector. Benchmark noted that among its competitors, Bitdeer has "ample existing and planned power capacity," making it particularly attractive.

From Bitcoin to AI: Mining Companies Transforming Computing Power, Energy Demand Key to Collaboration

Mining Companies Venturing into Artificial Intelligence

Bitdeer announced on June 28th that it has signed an agreement with the Monroe Port Authority in Ohio to acquire an additional 570 megawatts of power generation capacity. Following the agreement, Bitdeer's total generating capacity will reach 2.5 gigawatts, enough to power 250 million LED light bulbs. The announcement mentioned that this capacity will be used to provide services for Bitcoin mining, artificial intelligence, and high-performance computing (HPC).

Another Bitcoin mining company, Core Scientific, announced on June 22nd a partnership with cloud computing company CoreWeave, signing a 12-year contract for high-performance computing hosting, causing Core Scientific's stock price to more than double from $3 in May.

Bitdeer Ventures into ASIC Chips

Bitdeer is also entering the ASIC industry, manufacturing chips specifically for Bitcoin mining. This not only diversifies Bitdeer's revenue streams further, but Basit also stated that this area in the Bitcoin mining industry is currently dominated by Bitmain's Antminer. Citing a report from CoinDesk, Benchmark raised its expectations for Bitdeer to reflect the anticipated contributions of its ASIC chips and mining equipment plans, increasing its full-year revenue forecast for 2025 from $497 million to $617.5 million.