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A new partnership between Core Scientific and AI firm CoreWeave has ignited significant investor interest in the bitcoin mining sector, according to a recent JPMorgan report. The collaboration, involving a 200 megawatt deal for artificial intelligence applications, has increased the market cap of 14 tracked mining companies by $4 billion—a 22% rise. This growth starkly contrasts with a 7% drop in bitcoin’s value and a modest 3% increase in the S&P 500 during the same period.
JPMorgan analysts highlight the deal as a validation of mining facilities’ potential beyond traditional uses, pointing to the scarcity and value of power access. This shift is seen as an accelerator for miners to diversify into high-performance computing (HPC), reflecting broader, more lucrative market opportunities.
Iris Energy, praised for its excess power capacity and proactive adoption of HPC, is noted as particularly well-positioned to capitalize on these evolving industry dynamics. Meanwhile, other firms like Cipher Mining and Riot Platforms are adapting at varying degrees, with Marathon Digital and CleanSpark facing challenges due to higher operational costs.
