{"id":829573,"date":"2025-02-25T08:11:44","date_gmt":"2025-02-25T14:11:44","guid":{"rendered":"https:\/\/newsycanuse.com\/index.php\/2025\/02\/25\/analysts-eye-bitcoin-miners-ai-chip-sales-ahead-of-q4-earnings\/"},"modified":"2025-02-25T08:11:44","modified_gmt":"2025-02-25T14:11:44","slug":"analysts-eye-bitcoin-miners-ai-chip-sales-ahead-of-q4-earnings","status":"publish","type":"post","link":"https:\/\/newsycanuse.com\/index.php\/2025\/02\/25\/analysts-eye-bitcoin-miners-ai-chip-sales-ahead-of-q4-earnings\/","title":{"rendered":"Analysts eye Bitcoin miners\u2019 AI, chip sales ahead of Q4 earnings"},"content":{"rendered":"
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Investors are eyeing revenues from artificial intelligence computing and chip-making in top Bitcoin mining stocks\u2019 fourth quarter earnings releases, according to several analyst notes reviewed by Cointelegraph.\u00a0<\/p>\n

Miners\u2019 non-core business lines are taking center stage as the network\u2019s April 2024 halving erodes Bitcoin (BTC<\/a>) mining revenues. <\/p>\n

Bitcoin miners Riot Platforms (RIOT) and Bitdeer (BTDR) report earnings on Feb. 24 and 25, respectively. Marathon Digital (MARA) and Core Scientific (CORZ) both report earnings on Feb. 26.\u00a0<\/p>\n

In November, Riot, Bitdeer and Marathon reported lower-than-expected earnings as they grappled with lower post-halving BTC mining margins. <\/p>\n

Every four years, the number of BTC mined per \u201cblock\u201d \u2014 a bundle of transaction data stored on the blockchain \u2014 is reduced by half. The April event reduced mining rewards from 6.25 BTC to 3.125 BTC per block.<\/p>\n

However, analysts are optimistic that adjacent business lines \u2014 including leasing out high-performance hardware to AI models and selling specialized ASIC microchips \u2014 will more than offset any revenue losses.<\/p>\n

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Bitdeer has created a new business line selling its specialized hardware. Source: H.C. Wainwright<\/em><\/p>\n<\/figcaption><\/figure>\n

Related: <\/strong><\/em>Bet more on the Bitcoin miners cashing in on AI<\/strong><\/em><\/a><\/p>\n

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Adjacent business lines\u00a0<\/h2>\n

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Analysts at H.C. Wainwright & Co said they were \u201cencouraged to hear that demand for [Bitdeer\u2019s] first internally developed ASIC available to external customers has been strong out of the gate\u201d during the company\u2019s third-quarter earnings call in November.\u00a0<\/p>\n

They rated Bitdeer\u2019s stock a \u201cbuy,\u201d citing the miner\u2019s \u201coverlooked\u201d potential to disrupt the ASIC chip market, and raised its price target to $18. As of Feb. 24, BTDR trades at around $13 per share, according to data from Google Finance.<\/p>\n

In January, Riot \u201clowered its 2025 hashrate outlook for the second time since October 2024, as management has decided to halt\u2026 [planned BTC mining expansions] to evaluate the feasibility of utilizing the remaining capacity at the site for AI\/HPC,\u201d referring to AI and high-performance computing services, the analysts said in a January note.<\/p>\n

Riot is also rated as a \u201cBuy,\u201d with a $17 price target \u2014 significantly higher than RIOT\u2019s $10 share price as of Feb. 24, according to data from Google Finance. <\/p>\n

Meanwhile, larger miners are seeking to cut costs<\/a> by scaling capacity, including by acquiring power supplies and data centers.\u00a0Bitdeer plans to spend $100 million to build an in-house power plant and data center in Alberta, Canada, the H.C. Wainwright analysts said in February.\u00a0<\/p>\n

In November, Marathon executives vowed to \u201cfurther expand and diversify our portfolio of owned and operated sites, which we expect to yield significant cost savings,\u201d according <\/a>to the miner\u2019s Q3 earnings call. <\/p>\n

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Bitcoin miners could generate significant value by servicing AI apps. Source: VanEck<\/em><\/p>\n<\/figcaption><\/figure>\n

Lucrative synergies<\/h2>\n

Demand for computational power for AI models is surging, creating opportunities for Bitcoin miners.\u00a0<\/p>\n

\u201cThe synergy is simple: AI companies need energy, and bitcoin miners have it,\u201d according to an Aug. 16 report by Matthew Sigel, fund manager VanEck\u2019s head of digital assets research.<\/p>\n

\u201c[E]xisting bitcoin miners are uniquely equipped to support AI [and high-performance computing (HPC)] immediately,\u201d Sigel said.\u00a0<\/p>\n

In December, activist investor Starboard Value reportedly<\/a> took a stake in Riot to pressure the miner to diversify into serving demand from AI models for high-performance computing.\u00a0<\/p>\n

In February, Riot announced<\/a> a shakeup of the company\u2019s board of directors and plans to start a formal review of AI opportunities for the business.\u00a0<\/p>\n

Related:\u00a0<\/strong><\/em>Trump\u2019s crypto ventures raise conflict of interest, insider trading questions<\/strong><\/em><\/a><\/p>\n