Miners diversify their income streams by shifting their focus to high-performance computing services.
Avi Felman claims to be optimistic about Bitcoin miners, but not only because of Bitcoin’s future. Several businesses are shifting focus to HPC services rather than ASIC mining to diversify their income streams.
He gives the example of Hut 8, which is well-known as a Bitcoin mining corporation with operations in Alberta, Canada, and Texas. Hut 8 has acquired a contract to supply high-performance computing (HPC) services to customers in the Canadian healthcare industry because of its robust computing infrastructure.
Jonah Van Bourg, Global Head of Trading at Cumberland, and GoldenTree’s Head of Digital Asset Trading discuss the company’s expanding revenue plan on a recent episode of the 1000X podcast.
It’s natural to assume that when mining profitability improves, corporations abandon ASICs and move away from the volatile industry of cryptocurrency mining.
The chips aren’t even the point. To quote Felman: “it’s a completely different business.” Felman explains that having easy access to resources and knowledgeable personnel is more important. He mentions cooling as an issue that must be addressed in any large-capacity computer system. They’re fully operational in both Bitcoin mining and high-performance computing.
They have the personnel who can expand the services in question. They have the storage space and infrastructure necessary. They control the power agreements.”
Find out whether you lose enough bitcoins to justify spending $55 at Brooklyn’s Bitcoin spa. Felman claims that large-scale mining firms like Hut 8, Iris Energy, Hive, and Cypher may diversify their businesses and increase income by repurposing infrastructure to offer high-performance computing (HPC).
Felman clarifies that the existing ASIC technology cannot be redirected to the goal of offering HPC to customers. ASICs are highly specialised computers intended just for Bitcoin mining. However, he argues that mining firms might be “healthier” financially if they diversified the services they offered using their existing infrastructure and expertise.
He argues that if miners are less inclined to sell in uncertain markets, the bitcoin (BTC) market price will rise. Mining firms must constantly offload their new Bitcoin to maintain profitability, putting downward pricing pressure.
Mining companies will face liquidation less often as they improve and become stronger. As described by Van Bourg, an increased need for “purpose-specific computation facilities” may be behind the shift. He claims that Bitcoin mining hardware and software “laid the rails for other applications” to use the underlying technology.
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