Experts: miners may switch to AI after halving due to high costs

  • CoinShares has recently reported that some Bitcoin miners are considering switching to the artificial intelligence sector.
  • This shift is primarily motivated by the anticipation of high operating costs in the future.
  • It is projected that the cost of mining 1 BTC will nearly double compared to the end of 2023.

According to a report by CoinShares experts, rising operating costs after the halving could lead to Bitcoin miners diversifying into the field of artificial intelligence. This information was reported by CoinDesk.

The report highlights several companies, such as BitDigital, Hive, and Hut 8, which are actively investing in AI initiatives and products based on this technology.

For instance, in October 2023, BitDigital announced a $35 million purchase of graphics processors, which analysts speculate were intended for their new division specializing in AI.

Other miners, including TeraWulf and Core Scientific, are also reportedly exploring opportunities in the AI market. The rising operating costs are said to be driving these companies to reconsider their business models.

CoinShares predicts that after the halving, the average cost of mining 1 BTC will be around $53,000, nearly double the costs seen in Q4 2023. This increase is attributed to higher fees on the Bitcoin network resulting from the implementation of the Runes protocol.