Bitcoin miners are expanding their operations by venturing into AI data centers, despite facing high infrastructure costs. The average BTC transaction fee surged to $127 on the day of the Bitcoin halving, but has since dropped to around $4. This decline in fees and miner revenue has led to some miners experiencing losses, like Bitfarms, which saw a 42% revenue decrease in May.
In response to these challenges, some miners have started collaborating with AI companies to provide the necessary infrastructure for AI data centers in order to boost revenue and remain profitable. For example, Hut 8 Corp. has launched an AI vertical under a GPU-as-a-service model, while Bitdeer Technologies Group has incorporated high-performance computing into its offerings.
Additionally, Core Scientific recently announced a 12-year deal with CoreWeave to provide infrastructure for AI use cases, generating significant revenue for the company. However, not all miners may find success in transitioning to AI data centers due to the high infrastructure and capital requirements involved.
While AI data centers offer a new revenue stream for miners, they also require substantial investments in electricity, networking, and cooling systems. Despite the potential profitability of AI operations, some miners like Cormint Data Systems are cautious about implementing AI infrastructure due to the high upfront costs and complex engineering requirements. Ultimately, the decision to expand into AI data centers depends on each miner’s individual circumstances and capabilities.