Special Briefing: AI mining bitcoin mining AI?
22nd December 2023
Welcome to AI Collision 💥,
Today’s AI Collision 💥 is an out-of-schedule special briefing to let you know about something big, and important I’ve been working on.
You see, right now there’s two major investment trends that are lighting up the stock market and that have a fascinating symbiosis.
In fact, you could even say these two are the epitome of a “collision” between two seemingly different industries but in reality are perfectly suited to each other.
I’m talking about the AI collision with the crypto collision. The symbiosis between crypto and AI – or more specifically bitcoin mining and AI infrastructure.
But rather than tell you myself about what’s going on, I reckon it’s probably best to let the companies forming a part of this collision explain.
So, here’s what bitcoin miner Hive Digital Technologies has to say about its situation:
“GPU cloud is far more complex than mining Bitcoin with ASICs. It took us a few months to get the right hardware architecture in place and we’ve had a breakthrough in the last week. Our GPU server utilization rate has gone from 40-50% during our test phase to over 80% last week as our commercialization ramps up, allowing those GPUs to almost double their daily cash flow per server. The team has done an amazing job, and we’re rapidly learning and advancing this business. We’re quite bullish on the GPU cloud market, which we see as one of those rare opportunities which only come along every few decades. The demand is growing quickly.”
HIVE’s high performance computing (HPC) and AI business is currently generating 15x more revenue than bitcoin on a per-megawatt basis, and demand for GPU compute is growing rapidly.
15x.
Yes, fifteen times more revenue than bitcoin.
Daniel Roberts, co-founder and CEO of bitcoin miner Iris Energy, said in an announcement in August this year:
“Leveraging our next-generation data centers into generative AI is an exciting opportunity, particularly given current industry shortages in rack space and compute. We believe demand for sustainable computing is unlikely to go away, and feel we are uniquely positioned to capture ongoing growth in the broader industry; whether that be ASICs for Bitcoin mining, or GPUs for generative AI and beyond.”
This was part of the announcement saying it’d just dropped $10 million on a bunch of Nvidia H100 “AI” GPUs.
These two aren’t the only ones either. In fact, just about every bitcoin miner is now looking to the AI and HPC market for opportunity.
But, why?
Well it’s quite simple really. To mine bitcoin you need really fast and powerful computers operating at peak energy efficiency.
And to enable the growing AI and HPC industry you need really fast and powerful computers operating at peak energy efficiency.
Do you see the similarity there?
Now, here’s the thing…
Right now it’s clear we’re in the midst of an AI boom. I don’t think you’re in any doubt about that. As per our poll last week, you, like me, believe that 2024 is going to be a bigger year for AI stocks than 2023.
Note: the proof image on Tuesday didn’t work for some reason so here it is again.
But the other massive market boom that’s shaping up and is going to impact a select group of stocks is the impending bitcoin bull market.
And look, you don’t need me to tell you that it’s quite clear bitcoin is already on the trajectory back to the moon 🚀.
In just one year bitcoin’s price is up almost 190%. That’s a pretty good indicator to see why pretty much every major bitcoin-related stock has been flying higher in 2023, with many already up triple digits.
So here we’re talking about two massive investment opportunities that are converging, AI and HPC infrastructure, and bitcoin’s next bull market.
It’s rare that you get the “perfect storm”, so to speak, with two gigantic market opportunities that are also so closely aligned in this way.
What it all means for me is that we’re on the cusp of an investment opportunity that we’ve never seen before.
This collision between bitcoin and AI infrastructure is arguably a once-in-a-lifetime investment opportunity.
I think it’s so big and so important that I spoke to my publisher. We decided that it was necessary to get this special edition out to you immediately.
Furthermore, I’ve teamed up with my colleague, Kit Winder, to explain everything going on in the bitcoin space in a special briefing that is now active and live.
Our primary aim is to help people to understand what’s going on with the bitcoin market right now, and the catalysts that may be about to hit as soon as early January that could send the bitcoin price rocketing... and I mean on a bigger scale than any previous cycle we’ve seen before.
What makes this briefing urgent and important for you, and why it’s related to AI, is that I’m homing in on two of the best bitcoin miners I think are available on the market right now. Each with their own unique approach to bitcoin mining, but one also with a distinct strategy to potentially benefit from the explosion in AI and HPC infrastructure.
If the AI market and the bitcoin market do what I expect in 2024, then these two stocks could be portfolio game changers.
Frankly, never in my investing history have two seemingly separate investment themes collide in such a way at the exact same time to open up such a massive investment opportunity.
And getting ahead of it has never been as easy as it is today.
Anyway, I suggest going to check out the video briefing Kit and I have put together for everyone – you can do that via this link or the button below.
If you’re open to the idea of investing in bitcoin miners, if you can see that there’s a symbiosis between bitcoin mining and AI and HPC infrastructure, and if you love a bit of risk, and want to see what we think is the best way to play it all, then our video briefing will be right up your street.
Again, you can just hit the button below to go and check out the video.
Oh and just one more thing…
I write about the AI Collision 💥 but it’s also clear that bitcoin or crypto have a role to play in the AI world too. In fact, crypto as an industry is impacting and colliding with all kinds of industry much in the same way as AI.
I’ve got over 13 years’ experience in crypto markets, so I’ve been around the block a few times with it all. I think that the two investment opportunities behind both AI and crypto are probably the biggest things we’ll see this decade, and next.
So with that in mind, I’m thinking of launching another free “sibling-Substack” to run parallel to AI Collision 💥. The obvious name would be Crypto Collision 💥 where I look at and deep dive into the ins and outs and opportunities (stocks and crypto) within the crypto market too.
I’d send out both Collision 💥 publications twice a week, for free, to those inclined to want to know more. But before I do, I want to gauge if you think that’s a good idea or not and if you’d be interested in that. So please vote below:
Thanks for reading, see you soon, and don’t forget to leave comments and questions below,
Sam Volkering
Editor-in-Chief
AI Collision
Thanks for the update Sam