Bitcoin
Bitcoin Miners Abandon Cryptocurrency to Profit from AI
The Bitcoin mining reward has been reduced following the Bitcoin halving, and this is prompting some companies to shift from Bitcoin mining centers to artificial intelligence data centers.
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On a recent interview with CNBCHouston-based technology company Lancium and Denver-based Crusoe Energy Systems have announced a multibillion-dollar deal to build a 200-megawatt data center outside Abilene, Texas. The new center is designed to meet the unique needs of AI companies and marks a departure for the two companies, which have raised hundreds of millions in recent years for Bitcoin mining infrastructure.
The first phase of the Abilene facility represents a small portion of a larger 1.2 gigawatt expansion plan. Lancium President Ali Fenn said in an interview with CNBC that once fully operational, this will be one of the largest AI data center campuses in the world. This development serves as the latest evidence of the increasing pace of change towards AI infrastructure, leaving Bitcoin mining behind.
“Data centers are rapidly evolving to support modern AI workloads, requiring new levels of high-density rack space, direct-to-chip liquid cooling, and unprecedented overall power demands,” Chase Lochmiller, co-founder and CEO of Crusoe, told CNBC.
What is the reason to abandon Bitcoin mining?
Bitcoin went through a significant technical event earlier this year, called the ‘Bitcoin halving.’ This event reduced the reward for mining new Bitcoins by half. As a result of the halving, Bitcoin miners’ rewards for creating Bitcoins decreased from 6.25 Bitcoins to 3.125 Bitcoins.
The Bitcoin halving was built into Bitcoin’s code from the beginning to ensure scarcity and inflation protection. However, following this event, some Bitcoin miners are finding it challenging to remain profitable using older Bitcoin mining equipment and are now looking for other business opportunities.
Similarities Between Bitcoin Mining and AI Infrastructure
Bitcoin mining businesses and AI infrastructure share some similarities. Bitcoin mining companies operate extensive data centers that require energy consumption, hardware optimization, cooling, and technological advancements.
As the AI industry continues to grow and require more capacity and Bitcoin miners seek new ways to generate and diversify their income, AI becomes a seemingly safe option for them. Earlier this year, Bitcoin miners like Scientific Center It is Cabin 8 have invested millions in expanding their AI businesses and building AI data center portfolios.