Bitcoin Miners Are Pivoting To AI Post-Halving

Key Takeaways

• The April 2024 Bitcoin halving cut block rewards to 3.125 BTC, pressuring miners to diversify income sources and reevaluate their business models.

• Many mining firms pivoted toward AI and high-performance computing (HPC) to utilize existing infrastructure and counteract reduced crypto earnings.

• Core Scientific transitioned into AI colocation services, boosting stock value despite lower mining revenue.

• Hut 8 Launched Highrise AI with over 1,000 Nvidia H100 GPUs.

The AI Pivot: Lifeline Or Safety Net?

Some mining firms dipped their toes into AI, while others committed billions. For a few, the pivot has revitalized operations; for others, it’s a strategic hedge against further halving shocks.

Core Scientific: AI Revival Post-Bankruptcy

Once on the brink of collapse, Core Scientific stands out as a rare Bitcoin miner that rebounded strongly after embracing AI.

• Chapter 11 bankruptcy in 2022, relisted on Nasdaq in 2024.
• Signed a 12-year, $3.5 billion deal with AI firm CoreWeave in June 2024.
• Shifted from a pure mining model to AI colocation services.

Despite a Q1 2025 revenue drop to $79.5 million (from $179.3 million year-over-year), surging Bitcoin prices and AI leasing deals helped offset some losses.

In June 2025, acquisition talks with CoreWeave resumed, driving a spike in Core Scientific’s stock.

Core Scientific Was Among The Few Miners To Make A Profit Following The BTC Halving

Source: Nasdaq

AI As A Growing Revenue Engine

Iren Expands Both AI & Bitcoin Operations

Australian-based Iren started purchasing Nvidia GPUs in early 2024 and has since made meaningful progress.

• Signed its first AI contract in February 2024 with 248 GPUs.
• By mid-2025, deployed over 4,300 GPUs.
• Reported $3.6 million in AI cloud revenue for Q3 2025, a 33% increase.

Iren is developing AI data centers in Texas and British Columbia, though it faces legal scrutiny over alleged investor misrepresentation.

Scaling Up AI Revenue

Hive pivoted to AI in 2023 and has steadily built out its infrastructure:

• Deployed 5,000+ GPUs by mid-2025.

• Fiscal year 2025 revenue: $115.3 million, with $10.1 million from AI — tripling year-over-year.

• Targets $100 million in AI revenue by 2026.

Hive’s AI expansion now contributes around 9% of total revenue, positioning it as a serious player in both mining and AI.

Riot Platforms: Building The Foundation

Riot began evaluating AI conversion for its massive Corsicana, Texas facility in 2025.

• Evaluating 600 MW conversion to HPC.

• No major AI contracts yet, but strategic positioning is strong.

• Q1 2025 mining revenue doubled year-over-year to $142.9 million.

Riot also holds 19,225 BTC, the fourth-largest public treasury.

AI As A Side Hustle for Bitcoin Miners

While some companies have gone all-in on AI, others view it as a supplementary revenue stream.

Hut 8 launched Highrise AI, its GPU-as-a-Service division, in September 2024.

• Deployed over 1,000 Nvidia H100 GPUs.

• Signed a five-year revenue-share deal for AI compute services.

Hut 8’s Filing

Source: difc.com

Though Q1 2025 saw a net loss of $134.3 million and mining output drop to 167 BTC (from 716 BTC the previous year), the company emphasized strategic investments and holds a significant Bitcoin treasury of 10,273 BTC.

Notably, its subsidiary, American Bitcoin, raised $220 million to expand mining infrastructure, reinforcing the firm’s commitment to Bitcoin despite AI exploration.

The Outlier: A Bitcoin Miner That Rejected AI

In contrast to the AI wave, Canaan, an ASIC hardware manufacturer, chose to shut down its AI chip division in July 2025.

• Holds just 2.1% of global ASIC market share.
• Focusing on Bitcoin mining hardware and expanding operations in North America.

FAQ

Why are Bitcoin miners moving into AI?

After the 2024 halving, many Bitcoin miners faced reduced revenues. AI and HPC offer new revenue streams using similar infrastructure (e.g., data centers, GPUs).

Which Bitcoin miner has benefited most from AI?

Core Scientific has made the most significant turnaround, leveraging a $3.5 billion AI hosting deal to emerge from bankruptcy and regain market strength.

Are Bitcoin miners abandoning crypto?

No. Most firms like Hut 8 and Hive are expanding into AI while continuing to mine Bitcoin and hold substantial BTC reserves.

What challenges do miners face with AI expansion?

Capital-intensive infrastructure, regulatory hurdles, and competition from hyperscalers make the transition complex. Some companies, like Iren, have faced legal issues tied to AI rollout claims.

Will AI replace Bitcoin mining for these companies?

Unlikely in the near term. AI is becoming a complementary business model rather than a replacement. For now, mining remains the primary revenue source for most.