Bitcoin mining companies are opening up their data centers and powerful computing infrastructure to artificial intelligence and high-performance computing services due to revenue pressure. TerraWulf, Ionic Digital, Core Scientific, IREN, Bitdeer, Riot Platforms and Hut 8 are among the companies moving into this field.
Riot Platforms signed a 20-year agreement worth 9 billion dollars with US artificial intelligence company Anthropic, while Bitdeer entered into a 16-year contract to provide capacity to Anthropic. Enegix, which operates in Kazakhstan, is also holding talks with similar companies.
The high cost of retrofitting facilities for artificial intelligence has prompted some companies to sell part of their Bitcoin holdings. While analyst Wolfie Zhao says long-term contracts and infrastructure transformations will make it harder for mining companies to return to crypto, Bitdeer Chief Strategy Officer Haris Basit envisions a model in which the two activities are carried out together.
Why it matters
This shift is moving Bitcoin mining companies’ revenue structures beyond crypto prices and mining operations, changing how existing data center capacity is used. The 16- and 20-year contracts in particular show that artificial intelligence services have become an activity that commits companies’ infrastructure plans for extended periods, rather than merely providing a temporary source of additional revenue. Covering transformation costs through Bitcoin sales demonstrates that the transition into the new field is also affecting companies’ crypto holdings and financing preferences. However, it is unclear whether the sector will move in a single direction; while one view argues that infrastructure transformation will make a return to mining more difficult, the other approach envisages the two activities continuing simultaneously.