Bitcoin held above $65,000 on Thursday as markets digested Alphabet's better-than-expected earnings and a sharp increase in its AI infrastructure spending forecast. The Google parent's stock slipped after hours, but for crypto, the message was clear: the AI arms race is accelerating, and that means more demand for the chips and energy that underpin proof-of-work mining.
Alphabet's AI capex jump
Alphabet reported revenue that beat analyst estimates. The company also raised its AI spending forecast for the year, signaling it's doubling down on data centers and hardware. That's a big deal for crypto miners, who compete for the same Nvidia GPUs and power contracts.
When hyperscalers like Alphabet, Microsoft, and Amazon bid up chip prices, it squeezes mining margins. But it also validates the compute ecosystem. Some investors see this as a long-term bullish signal for Bitcoin as a digital commodity tied to energy and hardware.
Bitcoin's price action
Bitcoin traded around $65,200 at the time of writing, up modestly on the day. The level has held as a psychological support zone after a volatile month. Alphabet's earnings didn't directly move the crypto, but the broader sentiment around AI spending provided a floor.
The timing isn't great for Alphabet's stock — it dipped about 3% after hours despite the revenue beat, likely because investors focused on the higher spending. But for the chip complex, more spending is bullish. And crypto miners, who have been navigating a post-halving margin squeeze, could use any tailwind they can get.
What miners are watching
Public mining companies have been diversifying into AI compute services to offset lower Bitcoin rewards. The Alphabet news reinforces that strategy. If hyperscalers keep bidding up GPU prices, miners with access to power and data centers can lease out capacity at a premium.
That's a shift from the pure-play mining model. Firms like Core Scientific and Hut 8 have already pivoted. The question now is whether the AI spending boom will last long enough to make the transition stick. Alphabet's raised forecast suggests the answer, at least for the near term, is yes.
Next up: Microsoft and Amazon report next week. Their capex numbers will be the next concrete data point for this thesis.
