On November 21, 2025, Jihan Wu, co-founder of Bitmain, shared a striking insight at the Bloomberg New Economy Forum in Singapore.
He explained that maintaining high-efficiency mining can provide stable cash flow and strengthen confidence among power suppliers, effectively acting as a hedge while investing in AI infrastructure at this stage.
Bitcoin mining involves using specialized computers to validate transactions on the Bitcoin network. Miners are rewarded with new bitcoins for their work, which can create a steady revenue stream. Wu emphasized that by continuing mining, companies can sustain predictable cash flow, even as some investors chase trends like AI computing. This approach can reduce financial risk and provide backing for long-term investments.
A real-world example illustrates this strategy. In 2024, several Chinese miners temporarily converted parts of their operations to AI chip production during the surge in AI demand. However, those who maintained dedicated Bitcoin mining reported more stable earnings, helping them weather fluctuations in energy costs and AI hardware pricing. Wu’s approach highlights the value of balancing emerging trends with established revenue-generating activities.
The recent AI boom has drawn attention and capital across multiple sectors, from cloud computing to specialized chip development. However, rapid growth often comes with volatility. Wu’s argument is that keeping Bitcoin mining running ensures a financial and operational foundation. Stable mining operations build trust with electricity providers and allow firms to manage energy usage efficiently. This reliability can indirectly support AI infrastructure by providing a secure revenue base while investments in AI ramps up.
Data supports this idea. Bitmain estimates that well-optimized mining facilities can maintain gross margins of 30 to 40% under current electricity costs, providing a dependable cash cushion. In contrast, AI infrastructure requires substantial upfront capital and carries higher operational risk, especially with uncertain returns in emerging AI markets. Maintaining mining operations is a pragmatic hedge, balancing opportunity with stability.
The information provided by Altcoin Buzz is not financial advice. It is intended solely for educational, entertainment, and informational purposes. Any opinions or strategies shared are those of the writer/reviewers, and their risk tolerance may differ from yours. We are not liable for any losses you may incur from investments related to the information given. Bitcoin and other cryptocurrencies are high-risk assets; therefore, conduct thorough due diligence. Copyright Altcoin Buzz Pte Ltd.
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BTC+2 moreJihan Wu: Keeping Bitcoin Mining Is a Hedge Against an AI Bubble On November 21, 2025, Jihan Wu, co-founder of Bitmain, said in an interview at the Bloomberg New Economy Forum in Singapore that while some Bitcoin miners are shifting their facilities toward AI infrastructure, he Show more
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