With mining profits dwindling - large miners are absorbing or driving out smaller players, diversifying into AI and high-performance computation infrastructure and some adopting Bitcoin as treasury.
The pivot to AI and high-performance computing sounds like a smart diversification strategy for miners. But it's interesting that despite increasing their Bitcoin production, companies like Marathon Digital haven’t seen stock price gains. It shows that even with higher output, investor sentiment seems tied more to Bitcoin's broader market trends than just production numbers.
It’s fascinating how these companies are adapting. Cathedra’s shift from mining to becoming more of a Bitcoin accumulator mirrors what MicroStrategy did, but on a smaller scale. It’s clear that mining alone isn't as sustainable long-term, but I wonder if this approach could stabilize the industry or if it’s just delaying the inevitable for smaller players.
The shift toward AI and high-performance computing feels like a natural evolution for Bitcoin miners. As the profitability of mining decreases, leveraging their infrastructure for AI, which has growing demand, seems like a smart move. But I’m curious to see if this could further centralize mining power and reduce the decentralized nature of Bitcoin, which is its biggest strength.
The pivot to AI and high-performance computing sounds like a smart diversification strategy for miners. But it's interesting that despite increasing their Bitcoin production, companies like Marathon Digital haven’t seen stock price gains. It shows that even with higher output, investor sentiment seems tied more to Bitcoin's broader market trends than just production numbers.
It’s fascinating how these companies are adapting. Cathedra’s shift from mining to becoming more of a Bitcoin accumulator mirrors what MicroStrategy did, but on a smaller scale. It’s clear that mining alone isn't as sustainable long-term, but I wonder if this approach could stabilize the industry or if it’s just delaying the inevitable for smaller players.
The shift toward AI and high-performance computing feels like a natural evolution for Bitcoin miners. As the profitability of mining decreases, leveraging their infrastructure for AI, which has growing demand, seems like a smart move. But I’m curious to see if this could further centralize mining power and reduce the decentralized nature of Bitcoin, which is its biggest strength.