Fred Thiel, chairman and chief executive officer at Bitcoin mining behemoth Marathon Digital, has predicted "rapid innovation" and "rapid disruption" on energy markets.
Thiel has pointed to the fact that AI and data center companies have now emerged as one of the biggest financial backers of new energy generation projects.
These data centers are now helping to revive old nuclear plants. Thiel is, of course, alluding to the recent news piece about Pennsylvia-based Three Mile Island nuclear plant coming back online as part of its deal with tech behemoth Microsoft. It is expected to restart in 2028 in order to fuel Microsoft's AI data centers.
"Data center operators seek and will attain energy self-sovereignty, and in doing so will dramatically change the energy markets in a very positive way for all consumers," Thiel said in his lengthy social media post.
MicroStrategy-like strategy
Due to the declining profitability of Bitcoin mining following the latest quadrennial halving, some mining industry players have pivoted to AI in order to boost their revenue.
In August, Marathon Digital made headlines by taking a page out of MicroStrategy's playbook and selling convertible notes to buy more Bitcoin. The fact that it did not opt to buy mining equipment instead underscores the tough predicament of mining industry players. The company claimed that simply buying Bitcoin would be more beneficial for its shareholders.
The shares of Marathon Digital are down more than 30% on the year-to-date basis.
Tomiwabold Olajide
Yuri Molchan
Gamza Khanzadaev