- On Wednesday, JPMorgan said in a research note that hyperscalers as well as firms focused on artificial intelligence (AI) have been looking at various ways of securing their energy requirements and this could result in bitcoin miners having attractive power agreements becoming attractive targets for acquisition.
Bitcoin Mining Sector Sees M&A Target Amid Energy Shift
After halving, M&A target activities have picked up in the mining industry. CoreWeave cloud computing bought a 200MW AI contract from a Bitcoin mining industry yesterday, which boosted Core Scientific’s stocks; it was also revealed that they had made an all-cash offer for acquisition. On the other hand, last month Riot Platforms (RIOT) wanted the miner Bitfarms (BITF) dead in the market through a hostile takeover bid while it made overreaches towards buying another huge Bitcoin miner.
High-Performance Computing and Bitcoin Mining
According to the report by JPMorgan, the recent development from CoreWeave demonstrates that Bitcoin mining profitability may be validated and possibly accelerated in its entry into high-performance computing (HPC). Among banks under the J.P Morgan coverage firewall, it is crucial information about Core Scientific that would have a significant impact on Sally who is still overweight even though she should reduce her position in Iris Energy (IREN). The bank noted that Iris has been among the first few companies to introduce HPC technology while also holding permission for construction projects which would add up to around 2 GWs.
JP Morgan On The Agreement –
According to JPMorgan, this agreement may elevate the “valuation floor for sub-scale mining operators, as a new class of buyers (Hyperscalers) has emerged.” The suggested process, however, can also assist in bringing balance to the Bitcoin network by reducing the influence miners have on it as well as contributing to the profit enhancement of some remaining operators.
Up to 5 GW power capacity and an extra 2.5 GW power capacity are available for the twenty bitcoin miners in the United States according to the bank.
This makes it possible for them to become attractive targets. With the recent halving, some of these miners are financially strained thereby making them more amenable to any offer.
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