Bitcoin Miners Diversifying Into AI Projecting Billions in Revenue

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As an analyst with experience in the crypto and tech industries, I believe this trend of Bitcoin miners diversifying into machine learning and AI is a smart move in light of the recent Bitcoin halving. With miner rewards dropping significantly, it’s essential for these companies to explore new revenue streams to maintain profitability and sustain growth.

As a researcher studying the trends in the Bitcoin mining industry, I’ve observed that in response to decreasing miner rewards from 6.25 to 3.125 BTC, miners have been expanding their horizons into sectors like machine learning and artificial intelligence (AI). The AI marketplace is characterized by significant infrastructure demands, power requirements for model training, and immense workloads. Fortunately, Bitcoin mining companies such as Core Scientific possess the necessary capabilities to tackle these challenges.

Core Scientific Signs 12-Year Deal With Nvidia-Backed CoreWeave

As a researcher studying the latest developments in the tech industry, I’ve come across an interesting piece of news. Core Scientific, a leading data center infrastructure provider, recently announced an expanded partnership with CoreWeave, a prominent cloud AI company. This collaboration is backed by significant investments from Nvidia and private equity firms. Over the next twelve years, this partnership is expected to generate more than $3.5 billion in revenue for Core Scientific.

According to the contract, Core Scientific is responsible for supplying 200 MW worth of infrastructure for housing CoreWeave’s advanced computing tasks starting from the second half of 2024. Operations are scheduled to begin in the first half of 2025.

“According to Adam Sullivan, CEO of Core Scientific, our latest agreements with CoreWeave will enable us to revolutionize our hosting business and significantly boost our revenue potential. This is due to our ability to tap into the burgeoning market for AI compute, an innovative technology sector exhibiting rapid growth. Simultaneously, we will continue to uphold our successful bitcoin mining operation,”.

Miners Seeks New Revenue Streams After Bitcoin Halving

Just like Core Scientific, companies such as Bit Digital, Hive, Hut 8, and TeraWulf have been exploring various strategies to boost their income following the Bitcoin halving in April that reduced miner rewards by half.

James Butterfill, the research chief at digital asset firm CoinShares, pointed out that Bitcoin mining sites offer excellent conditions for artificial intelligence (AI) processes due to their location in power-reliable and energy-demanding data centers.

As a crypto investor, I’ve come across some interesting information about the revenue streams of three different mining companies: Bit Digital, Hut 8, and Hive. According to CoinShares’ latest report, approximately a quarter (27%) of Bit Digital’s earnings comes from Artificial Intelligence (AI) related activities. Hut 8 generates around 6% of its sales through AI, while Hive brings in roughly 4% from their data centers in Canada and Sweden that offer AI services.

Multiple cryptocurrencies including AGIX, FET, and NEAR have been influenced by AI-related news in their price movements. Nvidia’s impressive performance throughout the year has significantly boosted the value of coins linked to artificial intelligence technology.

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2024-06-04 10:07