Bitcoin mining companies: 70% find lifeline through AI revenue

Uk Jin

Summary

It reported that 70% of the top 10 Bitcoin mining companies are generating revenue from AI or high-performance computing (HPC) businesses.
It said that the Bitcoin bear market has led mining companies to focus on AI computing and data center businesses.
The industry says a 'hybrid' model combining GPU hosting and mining will take hold as a new survival strategy.

Among the top 10 Bitcoin mining companies, 70% are generating revenue from artificial intelligence (AI) or high-performance computing (HPC) businesses, helping them weather the bear market.

On the 10th (Korea time), CryptoSlate reported that TerraWulf signed a 10-year AI hosting agreement with FluidStack, partially backed by Google, for a total of 200 megawatts (MW). The contract is estimated to generate about $1.85 million in revenue per MW per year.

Another miner, Core Scientific, expanded its 12-year contract with CoreWeave to add 70 MW of HPC capacity. In addition, Bitdeer and Iris Energy are operating commercial AI cloud services using NVIDIA DGX and H100·H200 GPUs, respectively.

Marathon Digital Holdings, CleanSpark and others are also reportedly pursuing the construction of AI data centers.

As Bitcoin prices have weakened recently, miners' revenues have at times failed to cover expenses, leading these companies to turn to AI computation and data center businesses.

According to McKinsey, U.S. data center power consumption is expected to reach 606 TWh by 2030, and increasing grid demand is causing a reevaluation of the value of sites and infrastructure held by miners. The industry expects a 'hybrid' model in which GPU hosting and mining coexist to become a new survival strategy for mining companies.

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