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"While everyone’s busy speculating about whether Strategy will sell, a quieter storm is brewing in the Bitcoin mining world. Rising operational costs and the recent tumble in BTC’s price are putting miners in a tight spot, and some of the biggest players could be the first to dump their BTC.
Already, a number of mining companies are pivoting toward AI, hinting that they might not see crypto mining as a sustainable long-term play. But just how bad is it? Today, we’re taking a close look at the Bitcoin mining industry, giving you a clear picture of what’s going on, and whether you should worry."
~ Coin Bureau
Bitcoin mining companies, often overlooked as major holders, have increasingly been selling their BTC reserves due to mounting operational costs and the reduced profitability following the recent halving event, pushing the average cost to mine a single Bitcoin close to or exceeding its market price. This systemic profitability crisis has led nearly every major US miner to pivot strategically towards or heavily invest in AI and High-Performance Computing (HPC) data processing, which offers significantly higher revenue per unit of energy, although this requires them to juggle two incompatible business models using different hardware.
While large firms like MEA Holdings and Riot Platforms have sold thousands of BTC, the video asserts that these sales have had minimal impact on the overall BTC price, largely because they are often conducted over-the-counter, and the selling is already factored into market expectations. Ultimately, the shift to AI is viewed not as a threat to Bitcoin, but as a potential benefit, as a decrease in mining competition would simply lower the mining difficulty and restore profitability, while new revenue from AI could be reinvested into more efficient mining operations.
0:00 Intro
0:57 Largest Bitcoin Mining Companies
4:47 The Rising Costs of Bitcoin Mining
6:36 Bitcoin Mining Companies Pivoting to AI
11:14 How Have Bitcoin Miners Sales Affected BTC?
13:37 Should We Be Concerned?
Source - Coin Bureau YouTube: https://www.youtube.com/watch?v=hP9rC7Gy4Z4
Disclaimer: This video is provided for informational purposes only, and not offered or intended to be used as legal, tax, investment, financial, or any other advice.
