Crypto Companies Drive Wave of Deal-Making in AI and Mining Sector
Crypto companies are suddenly at the center of deal-making, with a number of transactions aimed at helping bitcoin mining companies retrofit their sites for artificial intelligence workloads. These mining facilities, with access to fiber lines and large amounts of power across the U.S., are in high demand due to their suitability for compute-intensive AI operations.
Following the bitcoin halving in April, which significantly reduced industry revenues, bitcoin miners are looking to diversify and find new ways to generate returns on their investments. This has led to a surge in mergers, financings, and partnerships within the industry.
One such deal involves U.S. bitcoin miner Core Scientific, which announced an expanded agreement with CoreWeave, an Nvidia-backed startup specializing in AI technology. Core Scientific will deliver 70 megawatts of computing infrastructure to support CoreWeave’s operations, with the potential to provide even more in the future. The deal is expected to generate an additional $1.2 billion in revenue over 12 years.
Similarly, bitcoin mining group Hut 8 raised $150 million in debt from private equity firm Coatue to expand its data center portfolio for AI. Hut 8 is among many mining companies pivoting to AI, with a growing percentage of their revenue coming from this sector.
Bit Digital, another bitcoin miner, entered into an agreement to supply 2,048 Nvidia GPUs to a customer over three years, doubling its processor capacity. The company ordered servers from Dell Technologies and will deploy them in Iceland, with the contract expected to generate $92 million in annual revenue.
While most recent crypto deals involve miners, there have been exceptions, such as trading platform Robinhood’s agreement to buy Bitstamp, a Luxembourg-based crypto exchange, for around $200 million in cash. This acquisition will help Robinhood strengthen its crypto operation and compete with industry giants like Binance and Coinbase.
As the crypto industry continues to evolve and adapt to changing market conditions, these deals highlight the growing intersection between cryptocurrency mining and artificial intelligence, signaling a new era of innovation and collaboration within the sector.
