【Mining Industry Transformation】Profitable Opportunities Under the AI Boom: Why Did This Mining Company Net $580 Million Yet Still Feel 'Not Good Enough'?

Bitcoin mining companies are quietly completing their identity transformation: from miners to AI data center moguls. Recently, a large mining company released its Q1 2025 financial report, showing a net profit of up to $580 million, doubling year-on-year, but total revenue failed to meet market expectations.

Despite the quarterly net income doubling to $580 million, the company's total revenue was only $79.5 million, down from $179.3 million in the same period last year, and also below analysts' expectations. Its main income still comes from Bitcoin mining ($67.2 million), custody services ($3.8 million), and high-performance computing (HPC) hosting ($8.6 million).

Halving Effect Impacts Traditional Mining, AI Becomes a 'Lifeline'

Bitcoin experienced a block reward halving in April, reducing mining rewards from 6.25 BTC to 3.125 BTC, which directly compressed mining income. However, the decline in electricity prices and the rise in Bitcoin prices (up 74%) partially offset the impact. Meanwhile, the company is accelerating its transformation towards AI and high-performance computing hosting.

In February this year, the company signed a $1.2 billion data center expansion agreement with an AI startup, aiming to achieve an annual HPC revenue of $360 million by 2026. The CEO stated that the company is at the forefront of the 'most critical transformation in modern computing' and will no longer be just a mining company, but a backbone of AI computing infrastructure in the future.

The Entire Industry is Accelerating Towards AI

Not only is this company transforming, but several other mining companies are also gradually allocating some of their computing power to AI and HPC. Analysts predict that if mining companies invest 20% of their energy in the AI sector, there could be an additional $13.9 billion in annual profits over the next 13 years.

Bitcoin mining is ushering in a new evolutionary form— the next boom is no longer 'mining coins,' but 'mining computing power.' Are you keeping up?