Why Bitcoiners turned to AI
The 2024 Bitcoin halving diminished block rewards to three.125 BTC, reducing miners’ revenue in half. This variation, mixed with greater electrical energy prices, costly tools upkeep and elevated competitors, made conventional mining much less worthwhile. Many mining corporations struggled to keep up their revenue margins and commenced exploring different income sources.
Though Bitcoin mining depends on gadgets referred to as ASICs, mining corporations have entry to energy-dense knowledge facilities and energy infrastructure. As demand for AI compute skyrockets, many miners are repurposing or upgrading their amenities with GPUs to assist AI coaching and inference workloads.
Nevertheless, synthetic intelligence calls for immense computing energy, particularly for coaching giant language fashions, powering autonomous techniques and operating enterprise AI instruments.
As tech corporations race to safe high-performance infrastructure, Bitcoin mining corporations are stepping in. Leveraging their present energy-intensive knowledge facilities and upgrading with GPUs, many miners have begun providing AI cloud companies or renting out spare capability. This diversification permits them to generate regular, non-crypto revenue streams, lowering reliance on unstable Bitcoin (BTC) revenues.
This shift offsets the affect of Bitcoin halving and has led to extra worthwhile and steady income streams.
Do you know? AI workloads and Bitcoin mining each demand huge vitality. By planning for each, miners can lease extra capability to AI corporations, particularly throughout crypto downturns, turning stranded energy right into a steady money circulation.
Case examine: Core Scientific’s $3.5 billion lifeline
Core Scientific is a powerful instance of how shifting to AI will help a struggling Bitcoin mining firm get better. After dealing with monetary difficulties and submitting for Chapter 11 chapter in late 2022 as a result of low Bitcoin costs and heavy debt, the corporate restructured and returned to the Nasdaq in early 2024.
In June 2024, Core Scientific signed a 12-year, $3.5 billion contract with CoreWeave, an AI cloud computing firm. The settlement allowed Core Scientific to make use of components of its infrastructure to assist CoreWeave’s high-performance computing wants, transferring away from solely mining Bitcoin to additionally offering AI companies.
Though the corporate’s income within the first quarter of 2025 fell to $79.5 million from $179.3 million the earlier 12 months, the AI technique boosted investor confidence. The corporate’s inventory worth rose after the CoreWeave deal was introduced, reflecting market assist for its new route.
By mid-2025, CoreWeave restarted talks to amass Core Scientific, following an unsuccessful $1 billion provide the 12 months earlier than. This renewed curiosity highlights how the corporate’s deal with AI cushioned the affect of Bitcoin’s halving and positioned it as a key participant within the rising AI computing business.
Hut 8’s AI aspect hustle
Hut 8 has added AI as a secondary supply of revenue whereas persevering with to prioritize Bitcoin mining. This enterprise mannequin combines stability and development potential by means of a five-year contract that features fastened funds and a revenue-sharing element, guaranteeing regular revenue with alternatives for added earnings based mostly on buyer success.
In September 2024, the corporate launched Highrise AI, a subsidiary providing GPU-as-a-Service utilizing over 1,000 Nvidia H100 chips, specialised {hardware} for coaching and operating superior AI fashions. This transfer marked Hut 8’s official entry into the high-performance computing (HPC) market.
Regardless of its AI enterprise, Hut 8 stays devoted to Bitcoin mining. Within the first quarter of 2025, it mined 167 BTC, a lower from 716 BTC in the identical interval of 2024, largely because of the 2024 Bitcoin halving. The corporate continues to put money into its mining infrastructure, supported by its vital Bitcoin reserve of 10,273 BTC, making it the ninth-largest company Bitcoin holder worldwide.
For Hut 8, AI serves as a complementary technique, diversifying its income whereas protecting Bitcoin mining because the core of its long-term plan.
How are hybrid fashions gaining traction: Hive and Iren
As Bitcoin mining income shrink, hybrid fashions combining mining with AI compute are gaining floor. Corporations like Hive and Iren are proving that it’s potential to develop AI income with out abandoning their Bitcoin roots. They’re diversifying revenue whereas optimizing present infrastructure.
Hive Digital Applied sciences
Previously referred to as Hive Blockchain, the corporate rebranded in mid-2023 to mirror its broader high-performance computing ambitions. Hive invested $30 million to deploy Nvidia-powered GPU clusters, marking a decisive pivot towards AI workloads.
This funding started to repay shortly. In fiscal 2025, Hive’s AI and HPC internet hosting income tripled to $10.1 million, virtually 9% of its whole income. Trying forward, Hive has set an formidable goal of $100 million in AI income by 2026, signaling a powerful dedication to increasing its hybrid mannequin.
Iren (Iris Vitality)
Australian mining agency Iren started its AI journey in early 2024 with simply 248 GPUs, and by mid-2025, it had scaled as much as greater than 4,300 items. The agency’s hybrid mannequin is already producing outcomes, mining 1,514 BTC in Q3 FY2025 whereas pulling in $3.6 million from AI cloud companies. To assist this development, Iren is constructing AI-focused knowledge facilities in Texas and British Columbia.
Nonetheless, the corporate faces a problem: A category-action lawsuit filed in October 2024 alleges it misled buyers concerning the operational readiness of its Texas facility, casting a shadow over its in any other case promising enlargement.
How main Bitcoin miners are getting ready for AI: Riot Platforms and MARA Holdings
Whereas some Bitcoin miners have already begun incomes income from AI, others are constructing foundations for future AI alternatives. Riot Platforms and MARA Holdings, two main corporations within the mining business, are strategically planning for AI integration whereas sustaining their deal with Bitcoin mining.
Riot Platforms
Exploring AI prospects, Riot Platforms has began assessing the potential to transform 600 megawatts at its Corsicana, Texas, facility into high-performance computing (HPC) infrastructure. Though Riot has not but secured vital AI contracts, its Corsicana website, protecting 355 acres, has the capability to assist as much as 1 gigawatt of computing energy, giving it a decisive benefit.
Financially, Riot stays strong in its main enterprise, having mined 1,530 BTC and earned $142.9 million in mining income within the first quarter of 2025. The corporate additionally holds 19,225 BTC (as of July 17, 2025), one of many largest company Bitcoin reserves worldwide.
MARA Holdings
MARA possesses essentially the most intensive Bitcoin treasury amongst mining corporations, with 50,000 BTC, second solely to Technique amongst public corporations. Its AI technique focuses on edge computing, together with growing its MARA 2PIC700 immersion cooling system, designed to deal with intensive computing duties.
Whereas MARA has the infrastructure prepared, its AI efforts haven’t but resulted in vital contracts or constant income. For now, a transfer into AI stays a forward-looking technique with potential for future development.
Do you know? Bitcoin mining depends on ASICs, however AI wants GPUs like Nvidia’s H100s. Some miners are actually retrofitting knowledge facilities with GPUs to assist AI purchasers, creating dual-purpose infrastructure that balances each blockchain and AI calls for.
An outlier case: Canaan’s retreat from AI
Whereas many Bitcoin mining corporations are exploring AI to broaden their revenue sources, Canaan has taken a unique method.
In July 2025, the corporate closed its AI chip division, stepping away from the high-performance computing sector. This choice displays a renewed deal with its main experience: designing application-specific built-in circuits (ASICs) for Bitcoin mining.
As a substitute of pursuing the rising AI market, Canaan is advancing its mining {hardware} to keep up a aggressive edge. Nonetheless, it holds solely 2.1% of the worldwide ASIC market, far behind main opponents like Bitmain and MicroBT.
By prioritizing mining-focused {hardware} and strengthening its presence in markets like North America, Canaan is adopting a singular technique when others are shifting towards AI. The long-term success of this method is but to be decided.
Do you know? AI corporations face stress to go inexperienced. Bitcoin miners that already use renewable vitality, like hydro or photo voltaic, can appeal to AI purchasers seeking to meet sustainability targets by means of clear colocation offers.
Key dangers and issues for miners getting into the AI market
As Bitcoin miners more and more shift to AI, this transition presents alternatives and vital dangers. Miners should fastidiously think about the next:
- Infrastructure prices vs returns: Transferring from ASIC-based mining to GPU-based AI techniques requires substantial preliminary funding. Miners should be sure that the potential long-term income outweighs these prices.
- Consumer stability: AI purchasers, significantly startups, might lack constant funding or long-term reliability. Miners ought to fastidiously consider purchasers to keep away from fee defaults or service interruptions.
- Energy provide reliability: AI operations demand steady, high-energy utilization. Miners should safe steady, long-term energy agreements and monitor native grid capability to forestall outages or sudden worth will increase.
- Cooling and thermal administration: AI chips, corresponding to Nvidia H100s, produce vital warmth. Insufficient cooling techniques can result in tools failures or diminished effectivity.
- Regulatory compliance: Internet hosting AI workloads might contain complicated laws associated to knowledge privateness, mental property, worldwide knowledge internet hosting, vitality use, water consumption and carbon emissions. Miners should be ready to navigate these guidelines.
- Market competitors: As extra miners enter the AI colocation market, pricing may decline. Early entrants ought to set up benefits, corresponding to strategic areas, low vitality prices or large-scale operations.
- Useful resource pressure: Increasing into AI whereas sustaining mining operations might overstretch monetary and administration sources.