Bitcoin Miners Shifting Towards AI and HPC
Bitcoin (BTC) miners are increasingly turning to artificial intelligence (AI) and high-performance computing (HPC) as transaction fee revenues continue to fluctuate, as per a recent report by VanEck.
The Challenge
- Network congestion causing temporary fee spikes
- Long-term revenue growth uncertainty
- Rise of off-chain solutions impacting on-chain revenue
With block rewards halving every four years, Bitcoin miners are compelled to explore new strategies to maintain revenue levels. This has led to a significant shift towards AI and HPC as diversification tactics.
Pivoting Strategies
Successful Bitcoin miners are adopting alternative strategies to optimize revenue streams. Some miners are using mining to support grid expansion in remote energy markets while others are leveraging existing power infrastructure for AI and HPC workloads.
Innovations
- Liquid cooling systems
- Advanced chip design
- Co-location technologies
A notable move in this direction was CoreWeave’s 700MW AI/HPC agreement in 2024, inspiring other miners to explore similar revenue streams.
Key Players
- Bitfarms (BITF)
- Bitdeer (BTDR)
- Cipher Mining (CIFR)
- Riot Platforms (RIOT)
- HIVE Digital Technologies (HIVE)
- Iris Energy (IREN)
Scaling Operations
As miners pivot towards AI and HPC, there is a growing need to scale electrical capacity to support these new business models.
Operational Capacity Growth
- 7.1 GW operational capacity currently
- Projected increase to 11.7 GW by 2025
- Compound annual growth rate of 42% over three years
The expansion will necessitate significant investment, highlighting the evolving landscape of Bitcoin mining towards more sustainable and diversified revenue streams.
