The next visitor publish comes from Bitcoinminingstock.io, the one-stop hub for all issues bitcoin mining shares, academic instruments, and trade insights. Initially printed on Aug. 29, 2024, it was penned by Bitcoinminingstock.io creator Cindy Feng. Within the piece, Feng explores how bitcoin miners are branching out into high-performance computing (HPC) and synthetic intelligence (AI) cloud companies.
Half 1: How Bitcoin Miners Are Tapping Into the AI Gold Rush
It’s been over per week since we final shared insights on public Bitcoin miners, however relaxation assured, we’ve been busy! From increasing our workforce to transferring workplace, lots has been occurring behind the scenes. However guess what? We’ve got some thrilling new options on the best way—I’ll dive into these in a separate publish.
For now, let’s speak about one thing that has been heating up within the Bitcoin mining world: HPC internet hosting. With AI being one of many hottest matters in tech and funding circles, it’s no shock that some Bitcoin miners are leaping on the pattern to diversify their income streams, particularly as they navigate the challenges of the post-halving period.
Which Bitcoin Miners Are Main in HPC Internet hosting & AI Cloud?
With regards to embracing HPC and AI internet hosting, just a few miners stand out. Core Scientific (CORZ), Iris Power (IREN), and Bit Digital (BTBT) have been making headlines, whereas others like Hut 8 (HUT), TeraWulf (WULF), and Bitdeer (BTDR) have been a bit quieter on this entrance.
Let’s dive into the numbers👇
Bit Digital, regardless of being a smaller-cap firm (rating #15 out of 30 by market cap on the time of writing), generated a major $12.497 million in income from their HPC internet hosting in Q2 2024, leaving friends far behind. In accordance with their quarterly submitting, they deployed 2,048 GPUs in early 2024 at a specialised information middle and are contemplating an improve to newer-generation NVIDIA GPUs. This improve led to a brief delay of their buy order, however the firm nonetheless acquired a $30 million non-refundable deposit from the shopper. With HPC internet hosting accounting for 43.17% of their whole income in Q2, it’s clear that Bit Digital is shifting focus from digital-asset mining—and so they’re doing fairly nicely, particularly when you think about their gross margins in comparison with friends.
Core Scientific is well-known for his or her partnership with CoreWeave. The corporate has secured long-term contracts to host CoreWeave’s HPC operations. At the moment, Core Scientific dedicates 16MW to CoreWeave operations in Austin, Texas, with plans for additional expansions throughout a number of websites, totaling 200 MW. This deal is predicted to usher in over $6.7 billion over the following 12 years. Nevertheless, HPC internet hosting nonetheless contributes solely a small portion of their whole income. Regardless of this, with their important investments in HPC infrastructure and ramped-up advertising and gross sales efforts, we will count on this sector to turn into more and more essential to their enterprise.
Iris Power is one other miner making waves with its HPC/AI enterprise. Simply yesterday, they shared their FY 2024 outcomes, highlighting fast development of their AI cloud companies. In accordance with their presentation slides, IREN operates 816 Nvidia H100 GPUs, serving a number of prospects. Though this sector contributed just one.64% to their whole income final 12 months, we will count on its contribution to develop.
Screenshot from IREN’s FY 24 Outcome Presentation
The Quieter Gamers in HPC Internet hosting
Hut 8 introduced in $3.365 million from HPC, accounting for practically 10% of their whole income. Whereas they didn’t disclose particulars on their GPUs, we all know their HPC operations span 5 areas in Canada, together with Mississauga, Vaughan, Kelowna, and two websites in Vancouver. There’s undoubtedly extra to discover right here.
Hive is a pioneer amongst Bitcoin miners in relation to HPC internet hosting. They generated $221,000 from HPC in Q2 2023, which grew to $2.605 million in the identical quarter of 2024—an enormous 1078.73% YoY development. Nevertheless, we must always be aware that their related gross sales prices for HPC additionally grew from $147,000 to $1.955 million (+1229.93% YoY). Because of this, their HPC gross margin dropped from 33.48% (Q2 2023) to 24.95% (Q2 2024).
Bitdeer is an attention-grabbing case. Regardless of being Nvidia’s most popular companion in Asia since final November and asserting the completion of their NVIDIA DGX SuperPOD H100 system deployment in March, their newest quarterly report doesn’t present a lot perception into how this has impacted their general enterprise. It’s one thing to regulate.
TeraWulf has been advancing its efforts to help a large-scale HPC and AI mission on the Lake Mariner Facility. In accordance with their newest quarterly report, TeraWulf dedicated an preliminary 2 MW block of energy to this mission, able to supporting hundreds of GPUs. In Q2 2024, they bought a 128-GPU cluster from NVIDIA, financed by a number one OEM. To help this mission, they’ve upgraded their web interconnection and designed a closed-loop liquid cooling system for the GPUs – all to make sure energy provide redundancy for 100% reliability.
Within the subsequent publish “How Bitcoin Miners Are Tapping Into the AI Gold Rush (Half 2)” we recognized just a few Bitcoin miners that had been missed in our protection. Utilized Digital, Mawson Infrastructure, and Soluna are additionally allocating assets to AI/HPC internet hosting.
