Companies dedicated to Bitcoin mining are currently undergoing a major internal transformation, largely associated with the emergence of artificial intelligence (AI). This shift in dynamics appears to be accelerating among the industry’s leaders.
Bitcoin miners turn to AI
Over the years, the mining industry associated with the Bitcoin blockchain has become increasingly competitive and demanding in terms of computing power, even though some solo miners still regularly manage to pull their weight.
This reality is being challenged by certain developments in the cryptocurrency market, with BTC prices expected to be less explosive and volatile since the massive influx of traditional finance, but also the joint development of AI in search of suitable data centers.
This equation is prompting some miners to diversify, putting part of their computing power to work in artificial intelligence or high-performance computing (HPC). This reality now involves 7 of the 10 largest mining companies, or 70%, in initiatives of this type.
The miner TeraWulf appears to be a very active player in this shift, following the signing of two 10-year hosting contracts with Fluidstack, a company specializing in high-performance cloud computing, for a total of 200 MW.
Similar initiatives have also been launched by Core Scientific, Cipher Mining, CleanSpark, and Marathon Digital, which is behind a deal to purchase a majority stake in EDF’s HPC and blockchain subsidiary, Exaion.
Towards a global overhaul of the sector?
In this context, mining infrastructures that are already operational and established represent rare and coveted sources of computing power far beyond BTC mining, with more stable and predictable long-term revenues for AI or HPC.
According to current estimates—with BTC at $104,000—the average revenue per MW of computing power is around $1.2 to $1.3 million per year, compared to around $1.85 million for AI hosting contracts. This is enough to motivate even the most reluctant.
This data could permanently change the face of the Bitcoin mining industry. Indeed, the hashrate of its main players dedicated to this activity could decline over the next few years, while at the same time triggering an increase in the valuation of these companies due to their growing involvement in the AI sector.
Nevertheless, BTC mining remains very lucrative, and a simple increase in its price or in the fees charged by miners could quickly reduce the existing profitability gap with AI. The problem? The prospect of a significant bear market looms like a sword of Damocles that cannot be ignored.
