Bitcoin miners are pivoting to new markets and making bank
Avi Felman says he’s bullish on bitcoin miners, but not strictly because of bitcoin’s potential. With a pivot to providing high-performance computing, or HPC, companies are finding new ways to broaden their revenue stream beyond ASIC mining. Hut 8, best known as a bitcoin mining company with facilities in Alberta, Canada and Texas, is a great example, he says. Thanks to its high capacity computing infrastructure, Hut 8 recently signed a contract to provide HPC for clients in Canada’s health sector. On a recent 1000X podcast (Spotify/Apple), the head of digital asset trading at GoldenTree talks to Cumberland’s Global Head of Trading Jonah Van Bourg about the broadening revenue strategy. It’s not about the hardware With the growing potential for more cash flow, one might expect mining companies to pack up their ASICs for greener pastures, leaving the precarious business of crypto mining and its knife-edge profit margins behind. But it’s not about the chips, Felman says, “it’s a c...