JPMorgan Chase: Bitcoin mining companies with large amounts of electricity will become potential acquisition targets for AI giants

JPMorgan (JPM) stated in a research report on Wednesday that the power demand of large-scale enterprises and artificial intelligence (AI) companies may make Bitcoin mining companies potential acquisition targets. JPMorgan said that the transaction between CoreWeave and Core Scientific confirms this.

The report stated that after the halving, mergers and acquisitions in the mining industry are heating up. Cloud computing company CoreWeave signed a 200-megawatt (MW) AI agreement with this Bitcoin miner, and reportedly proposed to acquire the company in full cash. After that, the stock price of Core Scientific (CORZ) soared. Meanwhile, another large Bitcoin miner, Riot Platforms (RIOT), proposed a takeover bid for fellow Bitfarms (BITF) last month.

The bank estimates that publicly traded Bitcoin mining companies in the United States consume up to 5 gigawatts of electricity and can obtain an additional 2.5 gigawatts, making them potentially attractive targets.