- Bitcoin miners are embracing AI as an alternative income amid a decline in mining revenue.
- Possible miner capitulations send a BTC buy signal as Hash Ribbon spikes continue.
More Bitcoin [BTC] Miners like Core Scientific are diversifying en masse into AI (artificial intelligence) to boost revenue streams after the April halving.
The BTC halving event in April reduced miners’ block rewards from 6.25 BTC to 3.125 BTC, cutting their earnings by half.
As of June 5, Bitcoin Miner’s daily turnover was $30.05 million. This was more than 70% lower than the record high of $107 million on the April 2024 half-day, according to YCharts.
Source: YCharts
AI to Solve Bitcoin Miners’ Revenue Problems?
According to a recent CNBC reportminers are now shifting their focus to AI computing due to higher rewards and increasing demand following OpenAI’s successful ChatGPT AI model.
According to the report, Bit Digital now gets 27% of its revenue from AI. Hut 8, another BTC miner, and Hive generated 6% and 4% of their revenue from AI, respectively.
According to Adam Sullivan, CEO of Core Scientific, the shift to AI will help create
‘Diversified business model and more predictable cash flows.’
The AI diversification could be a welcome relief given the reported capitulations of miners.
Are Some Bitcoin Miners Leaving?
An AMBCrypto will be published in mid-May report found that Bitcoin’s hashrate dropped significantly alongside possible miner capitulations amid spikes in Bitcoin Hash Ribbons.
Hash Ribbons track short- and long-term moving averages of Bitcoin’s hashrate. Spikes in the metric indicate low mining activity or the departure of less efficient Bitcoin miners.
The Hash Ribbons signal continues, with crypto hedge fund Capriole Investments calling the latest blip a “tempting Bitocin buy signal.’
Hash Ribbons is back. Perhaps the best long-term Bitcoin buy signal out there: Hash Ribbons is now tempting us with the current miner capitulation, which started two weeks ago.”
Furthermore, the Bitcoin miner reserve reached an annual low of 1.8 million BTC. The low level was last seen 14 years ago and suggested miners were unload their holdings, probably through OTC (over-the-counter) markets.
Source: CryptoQuant
Perhaps another piece that confirmed the Hash Ribbons ‘buy signal’ was Willy Woo’s claim that institutional traders ‘risk-on‘ and switched to buying. Should you copy professionals or wait for an outbreak?