Bitcoin Miners Expand Operations To AI Data Centers, Despite High Infrastructure Costs
A handful o f Bitcoin miners are diversifying operations to support artificial intelligence (AI) data centers amid struggles to stay profitable.
Data from Bitinfocharts show that the averag e BTC transaction fee on April 19, the day of the Bitcoin halving , surged to $127. Yet this has since plummeted to around $4 at the time of writing.
As a result, both Bitcoin fees and miner revenue have declined. For example, Bitcoin mining farm Bitfarms saw a 42% revenue loss in May. According to a company production and operations report, Bitfarms held 263 Bitcoin (BTC) ($18.1 million) in April but only 156 Bitcoin ($10.7 million) in May. Bitfarm described this as the “first full month with post-halving economics.”
In addition, miners sold at least 1,200 BTC on June 10, marking this as the highest daily total in two months. Julio Moreno, Head of Research at CryptoQuant, posted on X about this, noting that the crypto market is seeing signs of Bitcoin miner capitulation.
Sings of #Bitcoin miner capitulation:
yesterday we saw the largest daily miner selling volume since late March: 1,200 Bitcoin.
Some big mining companies have been selling a portion of their reserves.
These are Bitcoin being sold OTC, not in exchanges. pic.twitter.com/KhkHmmTDBo
— Julio Moreno (@jjcmoreno) June 11, 2024
Some Bitcoin miners have signed deals with AI businesses to provide infrastructure requirements in order to increase revenue and remain profitable.
Asher Genoot, CEO of mining firm Hut 8 Corp., told Cryptonews that Hut 8 recently launched its AI vertical under a GPU-as-a-service model. Genoot shared that Hut 8 Corp. purchased its first cluster of 1,000 NVIDIA H100 GPUs last October.
“We recently secured a customer agreement with a venture-backed AI
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