Global investment bank JPMorgan has observed a notable surge in investor interest in bitcoin miners after Core Scientific announced it would host 200 MW of GPUs for AI hyperscaler Coreweave. According to JPMorgan, the combined market capitalization of 14 tracked miners has increased by $4 billion since the announcement. This rise occurred even as bitcoin experienced a decline.
JPMorgan: Bitcoin Miners' Market Cap Jumps 22% Following AI Hosting Deal
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Interest in Bitcoin Miners Surges
Global investment bank JPMorgan said in a report on Monday that bitcoin miners have experienced a surge in investor interest over the past two weeks following Core Scientific’s announcement that it will host 200 MW of GPUs for Coreweave, an AI hyperscaler.
The combined market capitalization of the 14 bitcoin miners monitored by JPMorgan has risen by $4 billion since the announcement, contrasting with a decline in bitcoin and an increase in the S&P 500. The JPMorgan report details:
The aggregate market cap of the 14 miners we follow has increased 22% ($4bn) since the announcement (vs 7% decline in bitcoin, 3% increase in S&P 500).
JPMorgan attributes this increase to two main factors: the exploration of alternative, potentially more profitable uses for mining facilities and the high value and scarcity of power access.
The 14 miners tracked by JPMorgan include Marathon Digital Holdings (MARA), Riot Platforms (RIOT), Cleanspark (CLSK), Hut 8 Mining Corp. (HUT), Core Scientific (CORZ), Argo Blockchain (ARBK), Bitfarms (BITF), Hive Blockchain Technologies (HIVE), Iris Energy (IREN), and Stronghold Digital Mining (SDIG).
Core Scientific Inc. (Nasdaq: CORZ), one of the largest owners and operators of high-powered digital infrastructure for bitcoin mining and hosting services in North America, announced on June 3 that it had signed a series of 12-year contracts with Coreweave. Under this agreement, Core Scientific will deliver 200 MW of infrastructure to host Coreweave’s High Performance Computing (HPC) operations, modifying several existing sites. Modifications will start in mid-2024 and be operational by mid-2025. The agreements include two five-year renewal options.
Coreweave will fund the $300 million capital investment for site modifications, credited against hosting fees. Core Scientific explained that once the approximately 200 MW of HPC infrastructure is operational:
The project is estimated to generate total cumulative revenue for Core Scientific of over $3.5 billion during the initial 12-year terms of the contracts.
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