According to CoinShares Report, Bitcoin Miners May Switch to Different Sectors Due to Increasing Costs! Here are those areas!

Following the recent Bitcoin (BTC) halving, crypto miners are considering a shift towards artificial intelligence (AI) in energy-secure locations as a potential path to higher revenue, according to a report published by CoinShares.

CoinShares Predicts Bitcoin Miners Will Switch to Artificial Intelligence After the Halving

The four-year halving event that occurred on Friday evening slowed the growth rate of Bitcoin supply by 50%, prompting mining companies to re-evaluate their strategies.

CoinShares emphasizes that mining companies such as BitDigital (BTBT), Hive (HIVE) and Hut 8 (HUT) have begun to generate income from artificial intelligence. Additionally, TeraWulf (WULF) and Core Scientific (CORZ) either have existing AI operations or are planning to enter this space.

The report states that miners are expected to face significant cost increases after the halving, with electricity and general production costs almost doubling.

To reduce these high costs, mining companies can focus on optimizing energy expenses, improving mining efficiency, and investing in more cost-effective hardware.

“The weighted average cash generation cost in Q4 was approximately $29,500; post-halving, this cost is estimated to be approximately $53,000,” the authors said.

Additionally, the average cost of electricity generation in the fourth quarter was approximately $16,300 per Bitcoin and is expected to rise to approximately $34,900 post-money.

While CoinShares predicts that Hashrate will rise to 700 exahash by 2025, there could be a short-term decline of 10% following the halving as miners shut down unprofitable machines. Hash prices are expected to drop to $53/ph/day after the halving.

*This is not investment advice.