Galaxy Digital is the latest Bitcoin mining firm exploring a shift to AI, driven by increasing competition and rising mining difficulty within the sector.

In its third-quarter earnings report released on Nov. 7, Galaxy announced a preliminary agreement with an undisclosed US hyperscaler—a large data center operator—to potentially convert its 800-megawatt (MW) Helios mining facility in West Texas for high-performance computing (HPC). Hyperscalers offer immense computing capacity to support demanding applications like AI.

Currently, the Helios facility has 200 MW in operation, and Galaxy is investigating the feasibility of securing an additional 1.7 gigawatts (GW) of power capacity for the site. However, moving forward with this AI-focused plan will depend on thorough due diligence and necessary approvals.

Other major mining companies, like Riot Platforms and Marathon Digital, are also considering AI expansions. Core Scientific, another prominent miner, is poised to generate over $8 billion through a 12-year partnership with AI-focused hyperscaler CoreWeave.

This strategy follows predictions by industry analysts that Bitcoin miners who embrace AI could unlock new revenue streams. Asset management firm VanEck projects that Bitcoin miners could see up to $14 billion in annual profits by 2027 if they devote 20% of their energy resources to AI computations.

Q3 results

Galaxy’s third-quarter results further underscore the Go to Source to See Full Article
Author: Oluwapelumi Adejumo