Bitcoin Miners Need AI, Yield Strategies to Survive

Market maker Wintermute argues that many Bitcoin miners are struggling to profit this cycle due to diminishing returns and must adapt by either pivoting to artificial intelligence (AI) hosting or actively managing their Bitcoin reserves to generate yield. Miners possess infrastructure that the urgent AI industry needs, making the AI pivot a compelling but capital-intensive option. Furthermore, miners are holding nearly 1% of the total BTC supply, a "legacy of the HODL era," with treasury management largely untapped. Wintermute advises miners to treat BTC as a working asset, utilizing active management strategies like derivatives structures, covered calls, and puts, or passive options like lending protocols, to earn yields. This active management is seen as the most underutilized lever that will provide a structural edge heading into the next halving, as current revenue cuts from the halving have not been offset by price returns, unlike previous cycles.

(Source：Cointelegraph)