Bitcoin News Today: Bitcoin Miners' High-Stakes Gamble: AI or Crypto Volatility?

Bitcoin Miners Navigate Profitability Challenges Amid AI and ETF Turmoil

Bitcoin miners are grappling with a confluence of financial pressures and market volatility, yet many are finding respite through strategic pivots to artificial intelligence (AI) and high-performance computing (HPC). Despite a 20% plunge in Bitdeer Technologies' shares, the company highlighted a 174% revenue surge to $169.7 million, driven by expanded self-mining operations and early forays into AI cloud services. This trend mirrors industry-wide efforts to repurpose computing power amid waning mining profitability post-halving.

The push into AI has become a lifeline for miners. Bitdeer's Chief Business Officer, Matt Kong, emphasized the firm's ambition to allocate 200 MW of power capacity to AI, projecting a $2 billion annualized revenue run-rate by 2026. Similarly, BitFuFu, another Singapore-based miner, doubled Q3 revenue to $180.7 million, with cloud mining and AI demand accounting for 68% of its earnings. Rivals like Riot Platforms and CleanSpark are also expanding into AI infrastructure, with Riot acquiring 355 acres in Texas for data centers targeting enterprise clients.

Bitcoin's price dynamics add another layer of complexity. The cryptocurrency has held above $105,000, stabilizing after a late-October selloff, though ETF outflows reached $1.7 billion in October. Whale activity, however, has cushioned the impact: "Great Whales" (holders of over 10,000 BTC) increased holdings by 36,000 BTC, reinforcing structural bullishness. Meanwhile, institutional investors are cautiously rebuilding exposure, with spot trading up 12% weekly and derivatives funding rates declining.

The sector's financial health remains mixed. Bitdeer's adjusted EBITDA rose to $43 million, reflecting operational efficiency gains, while CleanSpark borrowed $1.15 billion at 0% interest to fund expansion and AI initiatives. Despite these moves, analysts caution of an "extremely bearish phase" following a technical "death cross" and weakening on-chain fundamentals.

Looking ahead, miners' success hinges on balancing Bitcoin's volatility with AI's growth potential. Bitdeer's 2,029 BTC treasury, valued at $214 million, and BitFuFu's 1,962 BTC holdings underscore the dual reliance on crypto price action and diversified revenue streams. As the network hash rate climbs to 1.19 billion, miners must navigate rising capital intensity, with CleanSpark's $1.15 billion raise exemplifying the high-stakes bets required to stay competitive.