- Bitcoin miners are embracing artificial intelligence as an alternative revenue stream amid declining mining income.
- Potential concessions to miners flash BTC buy signal as Hash Ribbons continues to rise.
more Bitcoin [BTC] Miners, such as Core Scientific, are heavily diversifying into artificial intelligence (AI) to boost revenue streams after the April halving event.
The Bitcoin halving event in April reduced miners’ rewards from 6.25 BTC to 3.125 BTC, cutting their income by half.
As of June 5, Bitcoin miners’ daily revenue was $30.05 million. This is down more than 70% from the record high of $107 million set on the halving day in April 2024, according to YCharts.
Source: YCharts
Artificial Intelligence to Solve Bitcoin Miners’ Revenue Problems?
However, according to a recent CNBC a reportminers are now shifting their focus to AI computing for its higher rewards and increased demand following OpenAI’s successful ChatGPT AI model.
According to the report, Bit Digital now gets 27% of its revenue from AI. Hut 8, another Bitcoin mining company, and Hive, generate 6% and 4%, respectively, of their revenue from AI.
According to Core Scientific CEO Adam Sullivan, the shift to artificial intelligence will help create…
“Diversified business model and more predictable cash flows.”
Diversifying AI could be a welcome thing given the reported miner capitulations.
Will some Bitcoin miners exit?
In mid-May, AMBCrypto was released a report It found that the Bitcoin network hash rate has dropped significantly, along with potential capitulations of miners amid spikes in Bitcoin hash bars.
Hash Ribbons track short- and long-term moving averages of the Bitcoin hash rate. Spikes in the metric show a decline in mining activity or the exit of less efficient Bitcoin miners.
The Hash Ribbons signal continued, and cryptocurrency hedge fund Capriole Investments referred to the latest flash as “The signal to buy Pitocin is tempting.’
Hash bars are back. Perhaps the best long-term Bitcoin buy signal is that Hash Ribbons are now tempting us with the current miner capitulation, which began two weeks ago.
In addition, Bitcoin mining reserves reached a yearly low of 1.8 million BTC. The low was last seen 14 years ago, and suggests the miners were there unloading their holdings, possibly through the OTC (over-the-counter) markets.
Source: Cryptoquant
Perhaps another piece supporting the Hash Ribbons “buy signal” was Willie Wu’s claim that institutional traders were “Risk“And I switched to buy. Should you copy the pros or wait until the range is broken to jump in?
“Explorer. Unapologetic entrepreneur. Alcohol fanatic. Certified writer. Wannabe tv evangelist. Twitter fanatic. Student. Web scholar. Travel buff.”
