JPMorgan: Bitcoin Miners Diversify Ahead of the Halving

Bitcoin miners are exploring new business directions ahead of the halving of the block reward from 6.25 BTC to 3.125 BTC. The Block reports, citing a JPMorgan report.

Analysts believe it could be profitable for miners to offer computing services in the rapidly developing artificial intelligence market.

After the transition of the Ethereum network to the Proof-of-Stake consensus algorithm, a large supply of graphics processing units appeared on the secondary market, according to experts. In their view, former miners of the second-largest cryptocurrency by market cap will also turn their attention to the AI sector.

“With the rapid growth of AI, heightened demand for high-performance computing opens a new and perhaps more profitable way to use GPUs previously employed in Ethereum mining,” JPMorgan wrote.

The report notes that tests conducted by miners to provide computing power showed high profitability — higher than Bitcoin mining.

Experts noted that industry players are also diversifying by region and have turned their attention to Russia, with its cold climate and surplus electricity.

Earlier, JPMorgan analysts called the Bitcoin halving a stress test for miners due to lower block rewards and rising costs.

As noted, nearly 60% of participants in a poll by popular blogger PlanB said they believe in the start of a bull market after the Bitcoin halving in 2024.