KUWAIT CITY, Aug 24: Recent advancements in artificial intelligence (AI) and the Bitcoin mining halving event have sparked a notable surge in mergers and acquisitions within the cryptocurrency sector, reports Al-Seyassah daily.

The market value of US Bitcoin mining companies hit a record high of $22.8 billion in early June, according to JPMorgan's research.

AI technologies, particularly generative AI, have intensified the interest in Bitcoin mining companies due to their extensive data centers, high-speed fiber internet access, and diverse power sources. These assets are crucial for the computational demands of AI operations, making mining companies valuable targets for acquisition.

The recent Bitcoin halving, which occurred in late April, has significantly decreased the profitability of generating new bitcoins, adding financial pressure on mining firms.

As a result, many are seeking to diversify their revenue streams or explore exit strategies.

This evolving landscape has led to a rise in mergers and acquisitions, as companies in the AI sector seek to leverage the robust infrastructure and energy resources of Bitcoin mining firms.

The alignment of goals between these two sectors is driving increased consolidation in the cryptocurrency market.