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May 19

For a while now, BTC miners have been massively pivoting to AI, so I decided to examine the trend more carefully. Here's the gist of it 👇

💡 Which companies are transitioning? Core Scientific, TeraWulf, Cango, Cipher Digital, Hut8, and more.

💡 Why are they pivoting?

1️⃣ While most miners have traditionally relied on hypergrowth, this cycle is different - bitcoin increasingly resembles a regular macro asset.

2️⃣ The enormous demand for AI compute capacity is like manna from heaven to miners, most of which are seriously indebted.

💡 What are the effects on Bitcoin?

1️⃣ The fact that miners fund this shift by selling big chunks of their BTC reserves creates additional pressure on the asset's price.

2️⃣ The effects on the hashrate are already visible with three consecutive negative difficulty adjustments. Fortunately, this allows new actors to join in.

Read the full article in comments and let me know your thoughts 👇

https://web3plusai.xyz/btc-miners-pivot-to-ai

The Web3 + AI Newsletter

BTC Miners Pivoting to AI: Who, What, Why?

Today's edition is an inquiry into the growing wave of bitcoin miners pivoting to AI. Which companies are transitioning and why? How would BTC be affected?](https://web3plusai.xyz/btc-miners-pivot-to-ai)