Bitcoin Miners Diversify into AI and HPC Contracts Amid Price Volatility

Bitcoin miners are shifting their focus towards AI and high-performance computing (HPC) contracts as the cryptocurrency's price volatility affects mining revenue. According to data, miners with AI and HPC contracts are commanding higher valuations than pure-play miners, trading at 12.3 times enterprise value compared to 5.9 times for Bitcoin miners.

TerraWulf, IREN, and Cipher Digital have seen their valuations more than double over the past year, while MARA Holdings has fallen by 40% due to weakened mining revenue. The hashprice of Bitcoin has also dropped from $63 to around $31.80 per PH/s over the same period.

CoinShares estimates that if Bitcoin were to return to its price of $126,000, it could lift the hashprice to about $59 per PH/s.