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AI Power Crunch can lead to more institutional investment in Bitcoin mining


Bitcoin mining companies and artificial intelligence data centers are increasingly competing for accessing cheap, sustainable energy, which may be able to impress the updated institutional investment in the mining sector over the next decade.

AI data centers with deep capital reserves begin to release miners for power infrastructure, with more bitcoin (Btc) Miners who get “price” or removal of mining activities, according to a research on July 31 Report From the bitcoin mining infrastructure provider Gomining institutional.

However, the flexibility of Bitcoin mining companies enables them to expand to more locations outside the grid with a lack of high-speed internet infrastructure, which gives them the advantage of AI facilities, according to Jeremy Dreier, Managing Director and Chief Business Development Officer at Gomining Institution.

The growing battle for energy will lead to a modified wave of institutional investment in Bitcoin mining over the next decade, Dreier says during the reaction of the cointelegraph day -day X Space Show on Thursday.

“In the next five to 10 years, because of this new battle with AI, we will see a new Heyday for Bitcoin mining because we have a real institutional capital that enters the galaxy.”

The institutional capital flows into the US spot bitcoin exchange-traded funds (ETF), with the Dreier calling on the “next step” mining investments for investors.

Institutions want cheaper “virgin” bitcoin

An institutional capital of capital with Bitcoin mining companies may be the next logical step as corporations investing in Bitcoin ETFs and Treasury companies look to get cheaper bitcoin for their sheet sheet.

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Many other institutions are exploring the possibility of getting cheaper, “virgin” BitcoinInstead of paying place prices in exchanges, Dreier says. “(Institutions) want to get a real new new minted Bitcoins, cheaper than they get it from the market.”

Increasing more institutions asks about bitcoin mining infrastructure services from Gomining in an attempt to get a cheaper bitcoin for their sheet, Dreier told Cointelegraph.

Indicated cost of making bitcoin. Source: Theminermag

Mining a bitcoin costs an average of $ 64,000 in the first quarter of 2025 and is expected to exceed $ 70,000 by the end of the year, which is still 70% cheaper than today’s Bitcoin price of over $ 119,050, According to In a Research Report of Theminermag.

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The battle for electricity between miners and AI data centers has seen many bitcoin mining companies varying operations to earn from this trend.

For example, for example, Riot platform has stopped its plans to expand Bitcoin mining operations in Corsicana, Texas, to explore AI opportunities on the same site.

Iris energy also announced a Strategic pivot towards Its AI cloud business, which puts a self-imposed cover on its mining armada, signed a “major reshuffling of priorities,” according to a report by the Gomining Institution.

However, Dreier learned of many public miners who “jumped into the AI bandwagon” to “quickly start moving back to investing more than Bitcoin mining,” as they see the spin of the institutional capital that occurred.

Others doubled in changing bitcoin mining. The bitcoin dedicated to the fintech company Block Inc. was introduced A new cryptocurrency mining system designed to expand the while -life of mining rigs and lower operational costs, which shines a potential strengthening for miners who are struggling to maintain facilities, Cointelegraph reported on Thursday.

https://www.youtube.com/watch?v=20zFedQDKL8

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