Bitcoin Miners Diversify Into AI Projecting Billions in Revenue
Highlights
- Core Scientific announced a 12-year deal with Nvidia-backed cloud AI firm CoreWeave.
- Bitcoin miners diversifying into other fields such as machine learning and artificial intelligence (AI) after Bitcoin halving.
- Core Scientific investing millions to make a projected a total revenue of $3.5 billion over the years.
Bitcoin miners have been diversifying into other fields such as machine learning and artificial intelligence (AI) to have other streams for generating revenue as miner rewards drop from 6.25 to 3.125 BTC. The AI market requires immense infrastructure, power supply to handle the training of AI models, and massive workloads, which Bitcoin miners such as Core Scientific can handle.
Core Scientific Signs 12-Year Deal With Nvidia-Backed CoreWeave
Core Scientific announced a 12-year deal with CoreWeave, a cloud AI firm heavily backed by Nvidia and private equity firms. The agreement extends an existing partnership between the two companies to provide more than $3.5 billion in revenue in contract years.
Under the terms of the agreement, Core Scientific will provide 200 MW of infrastructure to host CoreWeave’s high-performance compute (HPC) operations. The bitcoin mining firm will modify sites in the second half of 2024 and start operations in the first half of 2025.
“Our new contracts with CoreWeave position us to transform our hosting business and our earnings power by capturing exciting growth opportunities in AI compute, one of today’s most dynamic technology segments, while also maintaining our strong bitcoin mining franchise,” said Adam Sullivan, chief executive officer at Core Scientific.
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Miners Seeks New Revenue Streams After Bitcoin Halving
Similar to Core Scientific, other miners like Bit Digital, Hive, Hut 8, and TeraWulf have been seeking ways to bolster their revenue from different options after bitcoin halving in April cut miner rewards by 50%.
James Butterfill, head of research at digital asset firm CoinShares, said Bitcoin miners’ facilities are ideal for AI operations as they are stationed in energy-secure and energy-intensive data centers.
According to CoinShares, Bit Digital derives 27% of its revenue from AI. Hut 8 generates 6% of sales from AI, and Hive, which has data centers in Canada and Sweden, gets 4% of its revenue from these services.
The prices of multiple cryptocurrencies such as AGIX, FET, NEAR, and others move as per AI news. Nvidia’s strong performance this year has drive a massive rally in AI coins.
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