THE SIGNAL

Two things happened this week that nobody is connecting but should be.

First: Anthropic launched Claude Mythos Preview today — their most powerful AI model ever built. Partners include Amazon, Apple, Microsoft, Google, JPMorgan and Palo Alto Networks. In the weeks since it began limited testing, Mythos has already found thousands of high-severity zero-day vulnerabilities across major operating systems and web browsers — including a 27-year-old OpenBSD flaw and a 16-year-old FFmpeg bug. Anthropic describes it as capable of identifying and exploiting vulnerabilities "with little or no human steering."

That last part is the one that matters for crypto.

The same AI capabilities that make Mythos a powerful defensive tool make it an unprecedented offensive weapon if it ever lands in the wrong hands. Anthropic is racing to get it into defenders' hands first through Project Glasswing. But the arms race is now official — AI can find vulnerabilities in code faster than humans can patch them. Smart contracts, DeFi protocols, blockchain infrastructure — all of it runs on code. All of it is now more exposed than it was yesterday.

Second: Bitcoin miners are selling their Bitcoin to pay for Anthropic's infrastructure.

Hut 8 has a $7 billion data center deal with Anthropic backed by Google. Core Scientific is liquidating substantially all of its Bitcoin holdings to fund a 1.2 gigawatt pivot to AI hosting. TeraWulf is sitting on $12.8 billion in contracted AI compute revenue. The math forced their hand — miners are losing approximately $19,000 per Bitcoin produced while AI hosting offers stable, decade-long contracted cash flow from blue chip counterparties.

The industry built to mine Bitcoin is becoming the infrastructure layer for AI. The picks and shovels of the crypto economy are being repurposed for the AI economy.

This is not a threat to crypto. It is a structural shift in who owns the physical infrastructure underlying both industries. The power, cooling, land, and grid connections that miners spent a decade acquiring are exactly what AI data centers need. What changed is who's paying for them.

EDGE CHECK
🧠 NO GOOGLING, LETS SEE WHERE YOU STAND

MARKET RADAR
📰 THE STORIES THAT MATTER

NO BULLSH*T FILTER

"AI is going to destroy crypto security." — LEGIT. But not in the way you think.

The real threat isn't Anthropic. It's the arms race Mythos just officially started. When one of the most powerful AI models ever built can find and exploit critical vulnerabilities autonomously — the question isn't whether attackers will build something similar. It's how long until they do.

The Drift hack last week wasn't a code exploit. It was a 6-month North Korean espionage campaign that infiltrated the team and manipulated governance from the inside. That hack happened with 2025 AI capabilities. What does a nation-state attack look like with 2027 capabilities?

The honest answer: crypto security is not keeping pace with AI-assisted attacks. Ethereum has a post-quantum roadmap. Bitcoin has BIP 360. Most DeFi protocols have neither. The weakest link is not the blockchain. It's everything built on top of it.

BEYOND THE CHARTS
📡 REAL TIME ALPHA

The miner pivot story is bigger than it looks.

Bitcoin miners spent a decade acquiring something extraordinarily valuable without fully realizing it — cheap power, large land footprints, grid connections, and cooling infrastructure in remote locations. Those were the competitive advantages of Bitcoin mining. They are now the exact inputs that AI data centers are desperately competing for.

Anthropic locked up 3.5 gigawatts of Google TPU compute capacity on April 6. The US grid is projected to face a 6 gigawatt shortfall by 2027. Five AI data centers are on track to hit 1 gigawatt of power capacity each in 2026 alone. The infrastructure miners built is worth more to AI than it ever was to Bitcoin.

What this means for Bitcoin price: short term, it creates forced selling pressure as miners liquidate holdings to fund pivots. Medium term, it removes some of the most sophisticated Bitcoin holders from the market. Long term, the infrastructure backing AI and Bitcoin increasingly overlaps — which may create structural support for Bitcoin as AI companies become invested in the stability of that shared infrastructure.

TECH STACK
🛠 TOOLS FOR WINNING

Mythos just found thousands of vulnerabilities in major software. If you hold crypto in a DeFi protocol or smart contract wallet, understanding what's actually securing your assets matters more than ever.

PULSE CHECK
💬 YOUR TURN TO WEIGH IN

Bitcoin miners are selling their BTC to become AI infrastructure landlords. Is that a betrayal of the Bitcoin ethos — or the smartest business decision in crypto history?

Hit reply and let us know. We read every response.

— The Baseline Crypto Team

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DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research.

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