Bitcoin Miners Embrace AI Boom

Core Scientific signs a 12-year deal with Nvidia-backed CoreWeave as bitcoin miners embrace AI boom, projecting billions in revenue.

To generate additional income, Bitcoin miners have begun expanding their operations into domains such as artificial intelligence (AI) and machine learning (ML) in response to reducing miner rewards from 6.25 to 3.125 BTC.

The AI market necessitates substantial power supply, infrastructure, and duties, all of which can be managed by Bitcoin miners like Core Scientific.

Core Scientific Signs 12-Year Deal With Nvidia-Backed CoreWeave

Core Scientific and CoreWeave, a cloud AI company significantly backed by Nvidia and private equity firms, have reached a 12-year agreement. The agreement extends the two companies’ current partnership, which is anticipated to generate over $3.5 billion in revenue during the contract years.

Core Scientific shall furnish CoreWeave with 200 MW of infrastructure to accommodate its high-performance computing (HPC) operations, as stipulated in the agreement.

Beginning operations in the first half of 2025, the Bitcoin mining company will make site modifications during the latter half of 2024.

Adam Sullivan, chief executive officer of Core Scientific, stated, “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 the most dynamic technology segments of the present-day, while also maintaining our strong bitcoin mining franchise.”

Bitcoin Miners Seeks New Revenue Streams After Bitcoin Halving

Similar to Core Scientific, other miners, including Bit Digital, Hive, Hut 8, and TeraWulf, have been exploring alternative revenue streams in the aftermath of the 50% reduction in miner rewards caused by the halving of bitcoin in April.

James Butterfill, director of research at digital asset firm CoinShares, stated that the energy-secure and energy-intensive data centers housing Bitcoin miners’ facilities make them ideal for AI operations.

Bit Digital derives 27% of its revenue from AI, per CoinShares. AI accounts for 6% of Hut 8’s revenue, while Hive, which operates data centers in Sweden and Canada, derives 4% of its revenue from such services.