For many Bitcoin miners, the 2024 halving event slashed block rewards and forced a reckoning with unsustainable business models. Some firms, like Core Scientific, faced bankruptcy before reemerging with a renewed focus on AI hosting and high-performance computing services.
By repurposing their data centers for AI workloads, these companies have unlocked new, stable revenue streams. Core Scientific’s $3.5 billion, 12-year deal with CoreWeave marked a dramatic turnaround, signaling that AI colocation can provide a financial cushion against the volatility of Bitcoin mining.
This shift has not only revived struggling firms but also attracted renewed investor interest, as seen in Core Scientific’s surging stock price following fresh acquisition talks.
How AI Revenue Is Reshaping Miners’ Financials
For several major Bitcoin miners, AI is rapidly becoming a significant source of revenue. Companies like Iren and Hive have invested heavily in Nvidia GPUs, launching AI cloud services that now account for a growing share of their income.
Hive, for example, generated $10.1 million from AI and high-performance computing in fiscal 2025, nearly triple the prior year and now approaching 9% of total revenue. Iren’s AI cloud revenue rose 33% to $3.6 million as it expanded its GPU fleet and signed new contracts.
Despite the dominance of traditional mining, these AI-driven gains are helping offset losses from declining Bitcoin rewards and rising operational costs.
Did you know?
Core Scientific’s $3.5 billion hosting deal with CoreWeave in 2024 is one of the largest AI infrastructure agreements ever signed by a former crypto mining company, highlighting the scale and urgency of the industry’s pivot to artificial intelligence.
Bitcoin’s Price Rally and AI Synergy Drive Profit Margins
A surge in Bitcoin’s price since the halving has provided a tailwind, but it is the combination of mining and AI that is driving impressive profit margins for some firms.
Iren, for instance, maintained hardware profit margins above 70% in mining and 98% in AI cloud services, even as electricity costs climbed.
This dual-growth strategy allows miners to benefit from both the cyclical nature of cryptocurrency markets and the secular growth in AI demand.
The ability to scale AI operations alongside mining has become a key differentiator for companies navigating industry volatility.
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Diversification and Infrastructure Repurposing Shape Industry Trends
The pivot to AI is not universal, but it is reshaping the competitive landscape. Riot Platforms and Marathon Digital Holdings, two of the largest miners, are laying the groundwork for future AI and high-performance computing services, even as they remain financially strong in Bitcoin.
Industry-wide, the trend is toward diversification. Mining firms are leveraging their existing infrastructure to serve AI clients, mitigating the risks of crypto market swings and capitalizing on the explosive growth in AI and machine learning applications.
The increasing number of publicly listed mining companies and the growing institutional investment in blockchain and AI infrastructure reflect this evolution.
AI Integration Boosts Efficiency and Attracts New Investment
AI’s impact on mining extends beyond revenue diversification. Integration of AI technologies is streamlining operations, optimizing energy use, and reducing downtime for mining rigs.
These efficiency gains are expected to enhance profitability and attract further investment in the sector.
As miners continue to adapt, the synergy between AI and blockchain is poised to shape future market dynamics, driving both operational improvements and new business opportunities.
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