Bitcoin Miners Pivot To Other Areas In Quest To Diversify Earnings: JP Morgan
Digital asset miners are moving to other business ventures including offering high-powered technology services to artificial intelligence (AI) companies to improve earnings.
A new report from JP Morgan shows that crypto-based mining firms are expanding their operations to include high-performance computing, reducing their dependency on core primary operations, cryptocurrency.
The bank noted that while Bitcoin (BTC) miners lead the number of cryptocurrency miners transitioning up AI, other asset miners like Ethereum (ETH) also add to the surging figures.
As a result of the Ethereum Merge which saw the network transition to a Proof-of-Stake blockchain, with users staking assets to secure the network, miners began selling their high-earned hardware in the secondary market leading to a high supply and a slight drop in prices.
It should be stated that while most miners pivoted out of the industry, others preserved their equipment to mine other Proof-of-Work (POW) assets although it was not as profitable as mining Ether.
“However, mining these cryptocurrencies was not as profitable as mining ether due to their lower market caps and questions about their long-term viability.”
Nikoloas Panigirtzoglou, an analyst at JP Morgan argued that AI has opened a new phase for former Ethereum miners fueled by the demand for high-performance computing.
“With the rapid growth of AI, the increased demand for high-performance computing is now opening a new and perhaps more profitable avenue for utilizing GPUs previously used for ether mining.”
Several mining firms have changed their names to reflect the growing diversification trend with Riot Blockchain changing its name to Riot Platforms and Hive Blockchain Technologies now known as Hive Digital
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