As cryptocurrency mining profits decline due to decreasing energy costs, a notable trend has emerged where mining companies are transitioning to artificial intelligence (AI) and high-performance computing (HPC) infrastructure services. Miners are capitalizing on their existing advanced computing capabilities and energy infrastructure to explore new avenues in the rapidly expanding AI industry.
A recent report from TheMinerMag forecasts that Bitcoin mining costs will surpass $70,000 in Q2 2025, reflecting a 9.4% increase from $64,000 in Q1. The aftermath of the Bitcoin halving has seen mining revenues decline, leading companies to diversify their operations.
In April 2024, the fourth Bitcoin halving altered the mining landscape by halving block rewards from 6.25 BTC to 3.125 BTC. This adjustment demands that miners manage energy costs and upgrade their equipment, with profitability dropping to roughly $0.055 per day for 1 TH/s compared to $0.08 previously.
Shift Towards AI Services
Following the halving, tighter profit margins have become evident. Many miners have recognized that the traditional “mine, sell, and repeat” model is no longer sustainable. They have begun repurposing facilities built for high-energy machines to support AI computing.
Industry leader Core Scientific exemplifies this shift, signing a $3.5 billion, 12-year GPU infrastructure hosting agreement with an AI cloud provider in June 2024. This deal secures a long-term revenue source somewhat insulated from Bitcoin price fluctuations, igniting competition among mining companies.
Similarly, Riot Platforms has halted expansion plans for its Corsicana Bitcoin mining facility, choosing instead to lease the site to hyperscale data centers and AI firms. $MARA Holdings recently announced an investment in Exaion, aiming to strengthen its AI infrastructure.
While most miners continue to mine Bitcoin, it is increasingly becoming just one of their diverse revenue streams. They are exploring avenues like AI hosting and GPU leasing. Though it remains too early to gauge the success of this shift, initial figures indicate that AI computing offers significantly higher profit margins.
