Kirill Solovev, founder and chairman of Gomining, stated that Bitcoin mining trades at a discount to the asset itself and urged the industry to build payment infrastructure rather than pivot to artificial intelligence. Public Bitcoin miners signed tens of billions of dollars in AI data center deals following profit drops after the 2024 halving, capitalizing on power allocations and cooling infrastructure. The Bitcoin network's computing power dropped periodically after peaking above 1,100 exahashes per second, with consecutive downward difficulty adjustments. Solovev attributed the shift to squeezed profit margins and soaring AI data center demand from tech companies. The migration reflects a broader industry trend as miners leverage existing electrical grids that would otherwise require three to five years for tech firms to build.
Bitcoin Network Computing Power Drops After 1,100 Exahash Peak
The Bitcoin network's computing power peaked above 1,100 exahashes per second before experiencing periodic drops and consecutive downward difficulty adjustments. Publicly traded miners signed tens of billions of dollars in GPU cloud-hosting deals for high-performance computing and artificial intelligence infrastructure. Miners capitalized on secured power allocations, electrical grids, and cooling infrastructure rather than using specialized Bitcoin mining chips (ASICs) to run AI. The network maintained its 10-minute block times through automatic difficulty adjustments.
Solovev Calls Bitcoin Mining Undervalued Relative to Nvidia Market Cap
"Look at the scale: Bitcoin's market capitalization today is smaller than the capitalization of Nvidia alone," Solovev said. "This suggests that both Bitcoin and, all the more so, mining are undervalued relative to the role they can play --- though I present this as a thesis, not a guarantee." Solovev stated that mining currently trades at a steep discount to the asset itself. "If Bitcoin develops as a means of payment, facilitating those payments turns into a full-fledged business, not just mining," Solovev said. "If the transition to a payment function takes place, this gap will logically narrow. Miners should not wind down but keep building infrastructure and learning to service the payment flow --- that's exactly where the new economy appears, beyond the block subsidy."
GoBTC Protocol Features 0.2% Fee and 12-Hour Settlement
Gomining rolled out the GoBTC protocol allowing users to pay with bitcoin on Layer-1. The protocol features a 0.2% merchant fee, instant retail approval, and final on-chain settlement within 12 hours. The architecture relies on a 2-of-3 multi-signature scheme split between the user, Gomining, and a regulated recovery custodian. "Our solution is non-custodial, but it's a deliberate engineering compromise," Solovev said. "To make transactions instant and cheap, we really do need one key out of three as a co-signer." Gomining accesses the funds only when a transaction enters the mempool, and any two signatures can authorize a transfer. "I won't claim this is equivalent to pure single-key self-custody --- it isn't," Solovev said. "But 'non-custodial' here means exactly what it should mean: neither we nor anyone else can dispose of your satoshis without you."
Mining Concentrates in U.S. and UAE After China's 2021 Ban
Mining concentrated heavily within the U.S. and the United Arab Emirates following China's 2021 mining ban. China lost dominance it will struggle to regain, leaving North America with a distinct infrastructure advantage. "The logical next stage is when large corporations begin building their own data centers, including to ensure their own payment flow," Solovev said, noting that overall computing demand is accelerating these dynamics. Solovev stated that technology and AI is capable of gradually shifting the balance from confrontation to economic interaction and competition.
FAQ
Why does Kirill Solovev say Bitcoin mining is undervalued?
Solovev stated that Bitcoin's market capitalization is smaller than Nvidia's capitalization alone, suggesting that both Bitcoin and mining are undervalued relative to the role they can play. He noted that mining currently trades at a steep discount to the asset itself, and if Bitcoin develops as a means of payment, this gap will logically narrow.
How does the GoBTC protocol's 2-of-3 multi-signature scheme work?
The GoBTC protocol uses a 2-of-3 multi-signature scheme split between the user, Gomining, and a regulated recovery custodian. Gomining accesses the funds only when a transaction enters the mempool, and any two signatures can authorize a transfer. Neither Gomining nor anyone else can dispose of satoshis without the user, according to Solovev.
Where did Bitcoin mining concentrate after China's 2021 ban?
Mining concentrated heavily within the U.S. and the United Arab Emirates following China's 2021 mining ban. China lost dominance it will struggle to regain, leaving North America with a distinct infrastructure advantage, according to the source.
