In 2025, Bitcoin is once again in the spotlight.#BTC

The price breaking through the $118,000 mark not only allows all BTC holders to realize paper profits but also officially pushes Bitcoin into the full-cycle price discovery stage. However, the logic behind this wave of market activity is not as simple as just 'the price has risen'—

Some central banks are quietly allocating, some listed companies are transforming into 'Bitcoin ETFs,' while miners continue to mine while also making a large-scale entry into the AI computing power market.

You heard that right; behind this bull market lies a structural transformation: coin-holding institutions are increasingly resembling central banks, and miners are becoming more like cloud computing service providers.

🏛 Central banks are 'taking the scenic route' into Bitcoin, which is becoming a strategic reserve.

When talking about central banks, people first think of gold reserves and foreign exchange policies. But now, more and more signs indicate that central banks are quietly bringing Bitcoin into their sights.

Recently, the Czech central bank made an intriguing move: incorporating Coinbase stock into its S&P 500 index investment portfolio. On the surface, it appears to be investing in US stocks, but in reality, it indirectly holds Bitcoin risk exposure.

Why do this? Because:

As these companies soar due to holding BTC, the central banks, funds, and institutions investing in them naturally gain indirect exposure to Bitcoin.

As MSTR is expected to be included in the S&P 500 index, this indirect exposure will further spread.

🧩 Central banks haven't bought Bitcoin yet? They are buying 'companies that have bought Bitcoin.'

This may be their buffering strategy. Directly buying Bitcoin might raise political concerns, but purchasing stocks of 'coin-holding giants' is already quietly happening.

💼 MicroStrategy as a Bitcoin ETF? Don’t laugh; it's even more aggressive than an ETF.

Speaking of MSTR, no one sees it as a traditional software company anymore. It has long since transformed into a 'shadow Bitcoin ETF.'

  • Holds nearly 600,000 BTC;

  • Stock price rose 40% in the second quarter, far exceeding Bitcoin's 9.4% increase;

  • Becoming an 'alternative' for institutions, funds, and even central banks to speculate on BTC.

Moreover, as MSTR continues to increase its Bitcoin holdings through corporate bonds and financing, it is more like a super-leveraged Bitcoin fund than an ETF.

Thus, if MSTR really enters the S&P 500—this is not only a victory for MSTR but also another milestone for Bitcoin's penetration into the traditional financial system.

💥 In other words: Bitcoin is no longer a fringe asset; it is becoming an asset that is 'passively held.'

⛏ The halving is coming, and miners are under immense pressure: electricity costs remain unchanged, rewards are halved—what to do?

Meanwhile, the Bitcoin network has also entered a new phase:

The halving in April 2024 will reduce the block reward from 6.25 BTC to 3.125 BTC. Many overlook this technical adjustment, but for miners, it's like a pay cut while still paying rent.

  • Unit profitability per computing power dropped from $0.08/day to $0.055;

  • Electricity prices remain high, equipment is not cheap, and profit margins have been significantly compressed;

  • Mining is no longer a 'printing machine' but has become a high-cost, low-margin asset-heavy industry.

In the face of this cold wave, miners are showing differentiation:

  • One type chooses to hoard coins, waiting for the price to appreciate (Marathon, Riot, Core Scientific);

  • Another type chooses to transform its business, converting mining sites into AI data centers.

This is the new trend line—miners transitioning to AI is already underway.

🧠 Mining Bitcoin is no longer just about mining machines; GPUs are also involved.

The halving forces miners to seek new avenues, and they happen to have a scarce resource: high-performance computing power + stable energy access.

Thus, AI has become a natural 'second curve.'

🏗 Progress report on AI transformation of major miners:

🟢 Core Scientific

  • Signed a 12-year, $3.5 billion AI hosting agreement with CoreWeave;

  • Securing long-term revenue sources not related to Bitcoin prices;

  • Announced plans to fully convert some facilities for AI use.

🟡 Riot Platforms

  • Suspended the expansion of the 600MW mining site;

  • Opting to sell/rent to AI companies;

  • Monetizing idle power instead of continuing to 'struggle' with computing power.

🔵 Hut 8

  • Spin off mining business (American Bitcoin);

  • Focusing on developing the 'GPU as a service' brand Highrise;

  • Has deployed NVIDIA H100 and signed a five-year major contract with clients.

🔴 Hive

  • Once an Ethereum GPU miner, they naturally have AI experience;

  • Reusing old GPUs for AI business, with revenue reaching $20 million by early 2025;

  • Plans to achieve $100 million in revenue next year.

🟣 Marathon

  • Holds the most coins and hoards the hardest;

  • Board joins executives from the AI industry;

  • Launches liquid cooling equipment and explores AI hosting services;

  • Holds over 49,000 BTC and rarely sells.

🟠 Iris Energy

  • Going all-in on AI, liquidating Bitcoin, and fully transitioning to GPUs;

  • Plans to deploy 20,000 GPUs and establish multiple AI data centers;

  • Current revenue is still small, but the layout is aggressive.

💡 Why has AI become the 'lifeline' for miners?

In simple terms: high profits, strong demand, easy pricing discussions.

Mining revenue is subject to severe fluctuations in BTC prices, and a rise in computing power will dilute income.

And AI hosting is:

  • Long-term contracts with clients;

  • Predictable income with low volatility;

  • High profit margins (e.g., Iris AI department has a profit margin of 98%, mining business 75%).

Of course, the AI transformation is not a panacea:

  • Building AI data centers is extremely costly;

  • High-speed networks, professional cooling, and stable customers are also needed;

  • If the market cools, the risk of over-allocation is high.

But compared to pure mining, this is already a more stable path.

🔐 BTC hoarding has become mainstream, and the logic of strategic reserves is rising.

Don't forget, these miners are transforming, but they haven't stopped mining. Computing power is still at an all-time high, indicating they are not only continuing to mine but also not easily selling.

This is another signal: Bitcoin is being redefined as a strategic asset.

For miners, it is not only a source of income but also a 'hard currency' that can support company valuation, financing, and expansion.
For institutions, it is a volatile asset, but it may also be the last bastion against fiat risk and political uncertainty.

🧭 Summary: Bitcoin is transitioning from a 'speculative asset' to 'infrastructure'; this is just the beginning.

The BTC ecosystem in 2025 is no longer a bubble game of 2017 nor an emotional frenzy of 2021.

Now, it is gradually embedding itself into the national financial structure, corporate earnings reports, AI data centers, and central bank balance sheets in a low-key but resolute manner.

The trend we see is:

  • Indirect holding of Bitcoin by central banks is just the beginning; direct allocation may just be a matter of time;

  • Companies like MSTR have become 'Bitcoin privileged accounts';

  • Miners have upgraded from 'mining Bitcoin' to 'selling computing power,' with AI becoming a new profit pivot;

  • Market pricing mechanisms are maturing, and the structure of investors is continuously optimizing.

💬 At this stage, those who truly understand Bitcoin's value are no longer the KOLs shouting 'to the moon,' but miners who can turn BTC into cash flow assets, companies that can use it to hedge liabilities, and sovereign entities that can incorporate it into their treasuries.

In the future, it won't necessarily be about who bought Bitcoin first, but who can do more with Bitcoin.

✍️ DYOR, manage risks well, and I wish everyone a successful journey in the crypto world! 🌊

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