Bitcoin miners are now exploring new avenues to remain profitable, with some venturing into supporting AI data centers despite the high costs involved in the infrastructure.
Recent data from Bitinfocharts revealed a significant increase in the average BTC transaction fee following the Bitcoin halving event, reaching $127 on April 19. However, this fee has since dropped to around $4. Consequently, both Bitcoin fees and miner revenue have decreased, leading to a revenue loss of 42% for mining farm Bitfarms in May.
As a response to these challenges, some Bitcoin miners have sought partnerships with AI businesses to provide the necessary infrastructure for AI data centers. Hut 8 Corp. CEO, Asher Genoot, shared that the company has adopted a GPU-as-a-service model and is expecting to generate around $20 million in revenue annually through a venture-backed AI cloud platform. Similarly, Bitdeer Technologies Group has integrated high-performance computing into its offerings, resulting in a revenue of approximately $0.5 million as of June 6, 2024.
Core Scientific, a formerly bankrupt Bitcoin miner, has secured a 12-year deal with cloud provider CoreWeave to offer infrastructure for AI operations. This partnership is anticipated to generate over $3.5 billion in revenue for Core Scientific during the contract term.
While AI data centers hold promise for increased profits, not all Bitcoin miners may find success in this transition. Hut 8 Corp. CEO, Genoot, emphasized the substantial infrastructure and capital requirements for AI workloads, making it a challenging endeavor for many. Additionally, Jamie McAvity, CEO of Cormint Data Systems, highlighted the significant investments needed for AI data centers, including reliable electricity supply, advanced networking, and superior cooling requirements.
In conclusion, while some Bitcoin miners are exploring opportunities in AI data centers to enhance profitability, the transition may not be viable for all, given the complexities and costs involved in setting up and operating such facilities.
