In recent years, the Bitcoin mining market has faced increasing challenges, such as reduced block rewards and increased competition. In this scenario, several mining companies are redirecting their operations to more profitable sectors, especially Artificial Intelligence (AI). This movement, which began in 2023, has intensified, bringing companies traditionally linked to Bitcoin to the AI sector, attracted by new demands and the potential for long-term returns.
On Monday (21), Northern Data Group announced that it would completely abandon Bitcoin mining to focus exclusively on the AI sector. The company, which has ties to Tether, a major Bitcoin supporter, announced that this strategic change seeks to meet the new demands for highly energy-efficient computing infrastructure. Aroosh Thillainathan, CEO of Northern Data, explained that the transition to AI will allow the company to use first-class infrastructure and carbon-neutral energy systems, reinforcing the company's commitment to sustainability and innovation.
Core Scientific and the Expansion into AI
The migration trend is not limited to Northern Data Group. On Tuesday (22), Core Scientific, one of the largest listed Bitcoin miners, also announced the expansion of its infrastructure for the AI sector. The company intends to develop a 200 megawatt project to meet high-performance computing demands. Part of this expansion will be intended to receive GPUs from CoreWeave, a partner focused on AI, with the expectation that the new infrastructure will be operational in 2026.
Core Scientific CEO Adam Sullivan noted that demand for advanced computing workloads is constantly growing, and the company’s existing infrastructure is ideally suited to meet these needs. With the move, Core Scientific expects to solidify its position as a leader in data centers and high-performance computing, moving beyond its traditional role as a Bitcoin miner.
Impact of Bitcoin’s Diminishing Rewards
In addition to the new opportunities in the AI sector, other factors have driven this transition. With the last halving in April 2024, block rewards dropped to 3.125 BTC every 10 minutes. This scenario, combined with the increase in computing power required to mine Bitcoin and the stability of the cryptocurrency's price, has significantly reduced the profit margins of miners. This economic context has led companies such as Northern Data Group and Core Scientific to look for new markets, such as AI, to ensure more profitable and sustainable operations in the long term.
With another halving expected in the next three and a half years, miners that remain focused exclusively on Bitcoin will face additional challenges. However, this shift to AI does not mean abandoning the cryptocurrency market entirely; many companies still see value in blockchain technology and are seeking new management for the mining operations they have decided to divest.
The shift from Bitcoin miners to AI is a reflection of the economic and technological shifts shaping the current market. By diversifying their operations, miners like Core Scientific and Northern Data Group are seeking to ensure stability and growth while leveraging their existing infrastructure to meet the growing demand for high-performance computing in the AI sector. This shift could represent a trend for other companies in the sector as the cryptocurrency market adapts to new scenarios of profitability and innovation.