How AI and New Targets are Transforming Bitcoin Mining in 2024

Mike Novogratz, a prominent figure in the cryptocurrency world, recently highlighted that 2024 is a critical year for Bitcoin mining.

He praised the industry’s “remarkable resilience” amidst economic challenges and shared insights from a Galaxy Digital report on the latest trends in mining.

One of the standout developments this year is the integration of cryptocurrency mining with artificial intelligence (AI) and high-performance computing (HPC). According to Novogratz, this convergence is transforming the mining landscape, opening up new opportunities and increasing the demand for power.

Galaxy Digital has updated its forecast, now predicting a year-end hashrate target of 775 EH. The firm anticipates that public miners could manage up to 30% of the network’s hashrate and expects a significant improvement in mining efficiency. However, the rollout of new mining equipment still faces uncertainties.

For Bitcoin mining to sustain healthy growth, Bitcoin prices need to stay between $65,000 and $70,000. If prices fall below this range, mining could become economically unfeasible. Additionally, Bitcoin mining difficulty saw a notable decrease, dropping below 80 T in July for the first time since the last halving.

In the first quarter of the year, Bitcoin mining firms attracted a record amount of equity capital to enhance cash reserves and boost equipment efficiency. Galaxy Digital predicts that this trend of capital raising will continue in the latter half of 2024.