This lesson is important because I always stress the importance of keeping your tap dancing shoes on as everything changes all the time in investing.
We will be covering all the stuff happening in the era of AI that is impacting Bitcoin miners. The synergy between Bitcoin mining and AI is remarkable and will bring about many mergers and acquisitions soon. We are already seeing some of that action right now.
CoreWeave - which houses NVIDIA chips - has offered to buy Bitcoin miner Core Scientific for a billion dollars - shares popped 35% on the news.
The company wants to convert a Bitcoin miner into an HPC data center. CoreWeave is buying thousands of H100s and allowing people to rent their computing capacity worldwide.
Suddenly, Bitcoin miners are so cheap that people can buy them just to access electricity and their walls.
This chart is mind-blowing!
NVIDIA's market cap is the same as France's GDP. If you compare market cap to GDP, it is basically the seventh-largest country in the world!
I have been stressing since November 2022 how big this AI revolution is. If this does not give you an inkling of what is coming, I do not know what will.
Of course, there is Tesla…
Elon Musk is building xAI and ordering tens of thousands of NVIDIA machines. There was a lot of consternation just over the last 48 hours that Tesla rerouted a lot of their equipment because the south extension of Giga Texas' buildout was not complete to house 50,000 H100s for FSD training.
Housing these things is not trivial and it is difficult to stitch them together and have 50,000 of these H-100s running at the same time.
Core Scientific signs a 12-year, $3.5 billion partnership with NVIDIA-backed cloud AI company CoreWeave.
It is all about the megawatts!
What Core Scientific has given CoreWeave is 200 megawatts of data center space for their high-powered computing, which will launch sometime in 2025. Then, CoreWeave said, ‘why don't we just buy you guys all together after partnering?’
According to Jaron Jackson, miners who build HPC are getting rerated at a premium.
JP Morgan recently rerated Iris Energy to outperform, specifically for the HPC opportunity. High-performance computing and Artificial Intelligence are powerful technologies that, when combined, greatly enhance computational capabilities and efficiency.
This is a whole new play here, but the question is, why now? What is all with this HPC stuff, and what is the overlap with Bitcoin mining? Well, there is a lot…
This connection is driven by their need for substantial and reliable energy sources. We have heard of government administrations in the US and other parts of the world that want to shut down Bitcoin mining because it uses too much electricity.
I will show you that this is a weak argument because they do not like Bitcoin. Is the US now going to shut down AI because it is bad?
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