Cryptocurrency and artificial intelligence (AI) are two of the biggest technological trends so far in the 21st century. While both are exciting on their own, there are also interesting ways these technologies can intersect with and augment each other.
Companies that capitalize on this AI-crypto crossover could see outsized returns. Bitmine Immersion Technologies (BMNR +1.35%) is one to watch here, as this blockchain company has technology that may prove useful for AI development.
NYSEMKT: BMNR
Key Data Points
Immersion cooling could improve efficiency at AI data centers
Although it has been in the news recently for investing in Ethereum, Bitmine is also a Bitcoin mining company. The specialized hardware used for mining Bitcoin, ASICs, consumes massive amounts of energy and generates quite a bit of heat. To improve productivity, Bitmine uses immersion cooling technology, which submerges mining hardware in dielectric (nonconductive) fluid that absorbs heat.
AI development presents some of the same challenges miners face, including high energy consumption and heat generation. Immersion cooling could be just as impactful for AI as it has been for Bitcoin mining. Estimates from Sandia National Laboratories suggest that immersion cooling could decrease energy consumption by 70%, which would be a huge help for AI companies and the power grid.
This gives Bitmine another potential source of revenue, and one that's not directly connected to the volatile crypto market. Considering how much hyperscalers are spending on data centers, a move into AI infrastructure could be the next growth driver for Bitmine.
