Bitcoin miners and AI firms compete for cheap sustainable energy
Main Idea
Bitcoin miners and AI firms are competing for cheap sustainable energy, with Bitcoin mining firms having an advantage due to their flexibility, potentially leading to a new heyday for Bitcoin mining as institutional capital flows into the sector.
Key Points
1. Bitcoin mining firms have an advantage over AI facilities due to their flexibility in expanding operations.
2. Jeremy Dreier predicts a new heyday for Bitcoin mining in the next 5-10 years due to competition with AI and increased institutional capital.
3. Institutional capital is already flowing into US spot Bitcoin ETFs, with mining investments seen as the next step.
4. Mining a Bitcoin cost an average of $64,000 in Q1 2025 and is expected to surpass $70,000 by year-end, still cheaper than the spot price of over $119,050.
5. Some public miners shifting to AI may return to Bitcoin mining as the sector innovates and institutional interest grows.
Description
Bitcoin miners face rising competition from AI data centers for cheap energy, potentially driving a new wave of institutional investment, according to GoMining exec Jeremy Dreier.
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