- Crypto miners diversify, venturing into high performance computing for the burgeoning AI sector.
- Post Ethereum Merge, GPUs from ether mining find renewed purpose in gaming, rendering, and other blockchain endeavors.
Crypto Miners Branch Out
In a transformative industry shift, Bitcoin miners, the backbone of the cryptocurrency, are venturing beyond their foundational role. According to a recent JPMorgan analysis, these miners are now exploring the realms of high performance computing (HPC) services, catering to the rapidly advancing artificial intelligence (AI) industry.
GPU Repurposing after Ethereum’s Merge
While Bitcoin miners are making headlines, they aren’t the sole crypto miners pivoting to fresh pastures. The JPMorgan report indicates that erstwhile ether (ETH) miners, too, are eyeing new revenue streams.
The Ethereum blockchain, after its significant “Merge,” rendered a plethora of graphics processing units (GPUs) superfluous. These GPUs, once quintessential for ether mining, suddenly found themselves redundant in their original capacity. As a result, a significant number of these GPUs made their way to the secondary market.
In a bid to recuperate their investments, some ether miners opted to sell off their GPUs. Meanwhile, others redefined the roles of their GPUs, leveraging them for activities such as gaming, image and video rendering, and mining alternative proof-of-work cryptocurrencies. Notable names in this category include ethereum classic (ETC), ravencoin (RVN), and ergo (ERG).
However, analysts, including Nikolaos Panigirtzoglou, note a critical point: these alternative cryptocurrencies don’t match the profitability of ether, primarily due to their comparatively lower market capitalizations and prevailing uncertainties about their enduring viability.
In this landscape, the ascension of AI stands out as a beacon for miners. The surge in AI research and applications has led to an amplified demand for high performance computing. This upswing offers a potentially lucrative avenue for GPUs, previously designated for ether mining.
On the branding front, this shift in operational strategy is mirrored by some mining firms undergoing rebranding exercises. Case in point: Hive Blockchain Technologies metamorphosed into Hive Digital Technologies, while Riot Blockchain transitioned to Riot Platforms.
Moreover, the diversification isn’t merely limited to service offerings. Geographic diversification is also on the cards for Bitcoin miners. JPMorgan’s research illuminates Russia’s growing stature in the mining domain, now only second to the U.S. in Bitcoin mining power consumption.
