As the world of investing continues to evolve, a new trend is emerging among Bitcoin miners – diversifying into AI data centers. According to analysts at Bernstein, this shift is not only helping miners build sustainable business models but also attracting institutional investors.
Major miners like Marathon Digital and Core Scientific Inc have recently secured significant funding through convertible notes, each with their own unique approach. Marathon Digital, for example, raised $300 million to purchase more Bitcoin, following in the footsteps of MicroStrategy.
Marathon’s notes were priced with a 25% premium and a 2.125% coupon, maturing in 2031. On the other hand, Core Scientific secured $400 million with a 3% interest rate over a five-year term, aiming to pay off debt and expand into AI-focused data centers.
This shift towards AI data centers, known as the “Mullet strategy,” is gaining traction in the market. Bernstein suggests that this move could provide miners with a more sustainable economic model, especially as the AI industry continues to attract significant investments.
U.S.-listed Bitcoin miners have a natural advantage over their unlisted and non-U.S. counterparts, given their access to deep capital markets. Bernstein analysts believe that U.S. listed miners are poised to consolidate the market.
Looking ahead, the upcoming U.S. elections are adding uncertainty to the crypto markets. Polymarket trends show a close race between Trump and Harris, with a Republican victory, particularly by Trump, likely to be viewed positively by the crypto market.
Analysis:
The shift towards AI data centers among Bitcoin miners could have significant implications for investors. By diversifying their business models, miners may be able to attract more institutional interest and build a more sustainable economic model. Additionally, the upcoming U.S. elections and the potential impact on the crypto market add another layer of uncertainty for investors to consider.