As data center demand surges on the back of AI, so do power demands. And that could create shortages — an issue bitcoin miners could address.
As data center demand surges on the back of AI, so do power demands. And that could create shortages — an issue bitcoin miners could address, according to JMP Securities. It’s clear the new wave of AI chips, such as Nvidia’s latest generation, are incredibly power-hungry compared with legacy models used in server deployments today.
Critical power shortage on horizon – blockchain-focused companies are uniquely positioned. With the latest Nvidia Blackwell chip being configured at 60-120kW per rack, compared to the H100-200 at 25-45kW, and legacy chipsets at 8kW per rack, and with the anticipated launch of the Rubin chip in 2026, we anticipate power shortages that could easily exceed 40GW, wrote JMP Securities analyst Greg Miller in a recent report.
The analyst explained that considering the already low-cost/high-density power stacks used by bitcoin miners to run data centers efficiently, rendering them uniquely situated to provide additional space and power for data centers. Among his top picks in the blockchain space, Miller highlighted Hut 8 Mining (NASDAQ:HUT) and Core Scientific (NYSE:CORZ) as companies that could benefit from the exponential growth of data centers.
The analyst stated that Hut 8 has the hyper-power computing capacity to develop a multibillion-dollar recurring revenue stream in the data center space, which could come in handy as there's potential for data center power demand to more than double the market value of the bitcoin mining industry.
“We think more than 5GW of incremental capacity could be provided, creating $20+ billion of potential incremental equity value (net of investment), compared with the current aggregate market capitalization of ~$ 9.0 billion,” added Miller.
The analyst concluded that considering the urgent need for additional data center capacity and bitcoin miners' unique positioning to provide it, he believes this topic will heat up rapidly in 2024.
For more news, information, and strategy, visit the CoinShares Crypto ETF Hub.
Disclaimer:info@kdj.com
The information provided is not trading advice. kdj.com does not assume any responsibility for any investments made based on the information provided in this article. Cryptocurrencies are highly volatile and it is highly recommended that you invest with caution after thorough research！
If you believe that the content used on this website infringes your copyright, please contact us immediately (info@kdj.com) and we will delete it promptly.
