AI gold rush draws crypto firms away from Bitcoin
The price of Bitcoin has risen in August but is still far below its peak almost a year ago - and companies are refitting their mines.
By BBC News
Bitcoin mining companies are increasingly refitting their sites for artificial intelligence as the economics of crypto mining shift, according to the BBC report. The price of Bitcoin has risen in August but remains well below its peak almost a year ago.
The BBC says firms that once filled warehouses with computers for Bitcoin mining are now redirecting that computing power towards AI. It also reports that retrofitting mining facilities for AI can be expensive, and that some companies have had to sell some of their Bitcoin holdings to help fund the move.
The report names several companies that are moving in this direction, including Applied Blockchain, which has rebranded as Applied Digital, and TerraWulf, which now describes itself as focused on next-generation AI and high-performance computing. It also says Enegix is working with AI and high-performance computing firms and plans to convert a significant part of its operations.
For companies already making the switch, the BBC says the current Bitcoin bounce may not be enough to draw them back into crypto mining.