JPMorgan: Bitcoin mining companies with abundant power resources will become potential acquisition targets for AI giants

2024-06-06 08:25:55

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ChainCatcher news, JPMorgan (JPM) stated in a research report on Wednesday that the power demands of hyperscale enterprises and artificial intelligence (AI) companies may make Bitcoin mining companies potential acquisition targets.

JPMorgan noted that the deal between CoreWeave and Core Scientific confirms this. The report mentioned that merger and acquisition activity in the mining sector is heating up post-halving. Cloud computing company CoreWeave signed a 200 megawatt (MW) AI agreement with the Bitcoin miner, and it was reported that the company also proposed a full cash acquisition of the firm, after which Core Scientific (CORZ) shares surged.

Meanwhile, another large Bitcoin miner, Riot Platforms (RIOT), made a bid to acquire its peer Bitfarms (BITF) last month. The bank estimates that U.S.-listed Bitcoin mining companies consume up to 5 megawatts of power and can access an additional 2.5 megawatts, "making them potentially attractive targets."

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