As per the words of Phil Harvey who is the CEO of the company, Bitcoin miners will on average get about $1. 50 in terms of revenues per terahash monthly in the current run of the market cycle.
While Bitcoin mining firms try to expand the business into data centers to support revenue streams, the narrative here has been dominated by the migration to high-performance computing. Phil Harvey, the CEO of consulting firm Sabre56, which specializes in blockchain data centers, spoke with Cointelegraph about why such headlines are nonsensical.
Harvey was quick to point out that operating an AI or high-performance data center is much more costly than operating a crypto mining facility. The CEO maintained that the rough estimate of the operation cost of a standard commercial mining plant is between $300, 000 – 350, 000 for every Megawatt. at the same time, AI data centers cost between $3- $5 million per megawatt to run, that is 10-15 times more.
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As the CEO said, a mining operation that has a gigawatt of available power will only be able to effectively use maximally a spot of about 200 MW for high-performance computing purposes.
‘I reckon there’s roughly 20% maybe that of each of these miners’ balance sheets that are capable of providing the key attributes such as power, data, as well as land needed for AI.’
Harvey pointed to the space density, which, at 1000 sq ft/megawatt for crypto as opposed to 5000 for AI or HPC data center use cases, was of paramount importance in this case.
Further, retrofitting crypto mining facilities to AI and high-performance data centers entails high initial costs, Harvey added, stating that at least 90% of the infrastructure used by a mining company needs to be changed to make the facility suitable for data center purposes.
Bitcoin miners search for a way out of the post-halving reality
For instance, on one report made in the Recent month, VanEck proposed that the Bitcoin mining companies could realize $13. 9 billion in annual sales if they were to allocate 20% of their production to AI data analysis and other demanding calculations.