Summary:
Bitcoin miners are emerging as key players in the AI revolution, leveraging their existing infrastructure and expertise.
Bernstein predicts 20% of bitcoin miners' power capacity will shift to AI by 2027.
Iris Energy (IREN) and Core Scientific (CORZ) are two companies poised to benefit from this trend.
IREN has a strong power pipeline and data center expertise, with a 103% upside potential.
CORZ is a leader in AI data center co-hosting, with a 77% upside potential.
The shift could be a game-changer for both the bitcoin mining industry and AI technology development.
Bitcoin Miners Powering AI Revolution? đź’ˇ
Bernstein, a renowned research firm, sees a huge opportunity for bitcoin miners to transition into AI data centers. Why? Their existing electrical power infrastructure and operational expertise make them ideal partners for building out AI data centers.
Key Insights:
- Massive Growth Potential: The bitcoin miner pipeline for available electrical power is expected to reach 12 gigawatts by 2027, significantly exceeding the current 6 GW.
- Overcoming Interconnection Backlog: Bitcoin miners offer a quick solution to the utility interconnection backlog that's hindering many AI data center projects.
- AI Data Center Transition: Bernstein forecasts that 20% of bitcoin miner's power capacity will shift to AI by 2027.
Companies in the Spotlight:
- Iris Energy (IREN): With a strong power pipeline and robust data center operations, Bernstein projects 15% of its capacity will be used for AI data centers. They have a $26 price target, representing a 103% upside.
- Core Scientific (CORZ): Bernstein highlights their 12-year, $4.7 billion contract with CoreWeave as evidence of their leadership in the AI data center co-hosting model. They have a $17 price target, representing a 77% upside.
Other Key Points:
- Bitcoin miners' edge: High power density racks, cooling infrastructure, and data center operating capabilities make them ideal for retrofitting into AI data centers.
- Stock Performance: Both IREN and CORZ stocks have seen significant gains in 2024, suggesting investor interest in this trend.
This shift could be a game-changer for both the bitcoin mining industry and the development of AI technology.
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