Bitcoin miners eye AI and chip sales to boost Q4 earnings
As Bitcoin (CRYPTO:BTC) mining revenues face pressure from the April 2024 halving, investors are focusing on alternative revenue streams such as AI computing and chip-making for Q4 earnings.
Analysts are optimistic that these non-core business lines could offset revenue losses.
Miners such as Riot Platforms and Bitdeer are scheduled to report earnings on February 24 and 25, respectively, while Marathon Digital and Core Scientific will report on February 26.
H.C. Wainwright & Co analysts are confident in Bitdeer's ASIC chip sales and have given the stock a "buy" rating with a price target of $18.
"Encouraged to hear that demand for [Bitdeer’s] first internally developed ASIC available to external customers has been strong out of the gate" during the company’s third-quarter earnings call in November.
Riot Platforms has also gained a "buy" rating, with analysts suggesting a price target of $17.
To reduce costs, miners are scaling capacity by acquiring power supplies and data centers.
Bitdeer is planning a $100 million investment in an in-house power plant and data center in Alberta, Canada, according to H.C. Wainwright analysts.
Hyperscale Data, Inc. reported January 2025 Bitcoin mining revenue of approximately $1.9 million and plans to transition to high-performance computing (HPC) services for AI solutions by September 2025.
"We are transitioning to becoming a provider of high-performance computing ('HPC') services powering AI solutions, which we believe holds greater promise in the foreseeable future," stated Milton 'Todd' Ault III, Executive Chairman of Hyperscale Data.
Demand for computational power for AI models is growing.
"The synergy is simple: AI companies need energy, and Bitcoin miners have it," noted VanEck’s head of digital assets research, Matthew Sigel.
Bit Digital reported approximately $4.9 million in unaudited revenue from its HPC services and $2.9 million from its Bitcoin mining in January 2025.
IREN Limited reported a hardware profit margin of 75% and a total revenue of $52 million for January 2025.
Riot Platforms mined 527 Bitcoin in January.
At the time of reporting, the Bitcoin (BTC) price was $92,273.29.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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