The HPC pivot strategy you outlined is realy the key defense for these miners. CIFR's efficiency floor at $50k BTC is impressive compared to the others operting at breakeven or losses. What stands out is how the credit-enhanced contracts from Google and AWS basically tranform these from volatile commodity plays into infrastructure assets. The execution risk you menioned is probably now more important than Bitcoin price itself. Really thorough breakdown of how the business model is fundamentlly changing.
The transition from volatie mining revenue to fixed HPC contracts is really the key differntiator here. What stands out is how these companies are essentially becoming infrastructure landlords rather than commodity speculators. The take-or-pay structure with hyperscalers like Google and AWS transforms the entire risk profile. Even with BTC at $50k, CIFR's efficiency at 16.8 J/TH keeps them cash flow positive, which shows how much operational discipline matters when your building that AI capacity.
appreciate your note. Pivoting from an existing business with current revenue heavily skewed from old business, one has to test it against constraints of this old business
The HPC pivot strategy you outlined is realy the key defense for these miners. CIFR's efficiency floor at $50k BTC is impressive compared to the others operting at breakeven or losses. What stands out is how the credit-enhanced contracts from Google and AWS basically tranform these from volatile commodity plays into infrastructure assets. The execution risk you menioned is probably now more important than Bitcoin price itself. Really thorough breakdown of how the business model is fundamentlly changing.
The transition from volatie mining revenue to fixed HPC contracts is really the key differntiator here. What stands out is how these companies are essentially becoming infrastructure landlords rather than commodity speculators. The take-or-pay structure with hyperscalers like Google and AWS transforms the entire risk profile. Even with BTC at $50k, CIFR's efficiency at 16.8 J/TH keeps them cash flow positive, which shows how much operational discipline matters when your building that AI capacity.
very useful to understand the real situation...
appreciate your note. Pivoting from an existing business with current revenue heavily skewed from old business, one has to test it against constraints of this old business
Awesome stuff on the stress test for each company
This analisys comes at the perfect time. How stable are those new AI/HPC colocation margins, realy?