BitcoinBTCBloomberg reported that Microsoft had reportedly decided to scrap plans to build new data centers for artificial intelligence in Europe and the US, citing an oversupply.
Data showed that Bitfarms (CleanSpark), Core Scientific, Hut8, Marathon Digital, and Riot all saw their shares drop between 4 and 12 percent in response to the recent news.
Crypto miners are highlighted by the stock market’s retrenchments. increased dependence on business from artificial intelligence models The Bitcoin network will end in April 2024 “halving” cut into mining revenues.
CORZ intraday Nasdaq performance. Source: Google Finance
Mine workers are “diversifying into AI data-center hosting as a way to expand revenue and repurpose existing infrastructure for high-performance computing,” Coin Metrics reported in a report from March.
Core Scientific, for example, has pledged to provide CoreWeave with 200 Megawatts in hardware support by June 2024.
VanEck Asset Manager will be launching its August 2024 asset management service. said Bitcoin-mining stocks’ market caps could increase collectively by around $37 billion if they invested heavily in AI.
Nevertheless, miners have struggled this year JPMorgan stated in March that the declining prices of cryptos will increase pressure on businesses, already affected by the halving in April. A decline in demand for AI data centres could cause further stress.
By focusing on AI, Bitcoin miners can see their value increase. Source: VanEck
Related: Bet more on the Bitcoin miners cashing in on AI
Cut back on computing
Microsoft has abandoned its plans to construct several data centers which would have produced around 2 gigawatts. This was reported by TD Cowen analysts on March 26, 2009. according Bloomberg.
Microsoft’s decision not to proceed with some of its planned projects was attributed by analysts to the oversupply perceived in terms of computing resources for AI.
Bloomberg reported that Microsoft has delayed its plans to increase capacity and canceled several data center leases over the past six-month period.
Bloomberg reported that Microsoft data center investment is expected to continue to decline in the second half 2025, as it completes $80 billion of planned construction and focuses on equipping existing facilities with new hardware and software.
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Source: cointelegraph.com
