As BTC mining rewards have been halved, Bitcoin miners are diversifying into fields like machine learning and AI.
As the rewards for mining Bitcoin have decreased from 6.25 BTC to 3.125 BTC, Bitcoin miners have begun expanding their operations into other disciplines, such as machine learning and artificial intelligence (AI), to secure additional revenue streams.
Bitcoin miners like Core Scientific are able to handle the tremendous workloads that are required by the artificial intelligence industry. The industry necessitates enormous infrastructure, a power supply to handle AI model training, and massive workloads.
Core Scientific Signs 12-Year Deal With Nvidia-Backed CoreWeave
Nvidia and private equity groups strongly support CoreWeave, a cloud-based artificial intelligence company. Core Scientific and CoreWeave have signed a 12-year contract. This arrangement will extend the existing cooperation between the two organizations, generating more than $3.5 billion in revenue over the contract years.
As stipulated in the agreement, Core Scientific will be responsible for providing an infrastructure with a capacity of 200 megawatts (MW) to house CoreWeave’s high-performance computing (HPC) activities.
In the second half of 2024, the bitcoin mining company will begin making modifications to the sites, and in the first part of 2025, they will begin operations.”
Our new contracts with CoreWeave position us to transform our hosting business and our earnings power by capturing exciting growth opportunities in artificial intelligence compute, one of the most dynamic technology segments of today,” said Adam Sullivan, chief executive officer at Core Scientific.
These opportunities will allow us to maintain our strong bitcoin mining franchise while also capturing exciting growth opportunities in AI compute.
Bitcoin Miners Seeks New Revenue Streams After Bitcoin Halving
Similar to Core Scientific, other miners such as Bit Digital, Hive, Hut 8, and TeraWulf have been looking for ways to increase their revenue from various possibilities since the halving of bitcoin in April, which reduced miner incentives by fifty percent.
James Butterfill, head of research at the digital asset firm CoinShares, stated that the facilities that Bitcoin miners use are perfect for artificial intelligence operations because they are located in data centers that are both energy-secure and energy-intensive.
In accordance with CoinShares, artificial intelligence accounts for 27% of Bit Digital’s total revenue. The use of artificial intelligence (AI) accounts for 6% of Hut 8’s revenues, while Hive, which operates data centers in both Canada and Sweden, derives 4% of its revenue from similar services.
There are a number of cryptocurrencies, like AGIX, FET, NEAR, and others, whose prices fluctuate in response to AI news. Nvidia’s strong performance this year has significantly boosted the value of AI coins.