The following visitor post comes from Bitcoinminingstock.io, the one-stop hub for all things bitcoin mining stocks, academic instruments, and industry insights. Originally published on Aug. 29, 2024, it was penned by Bitcoinminingstock.io author Cindy Feng. In the piece, Feng explores how bitcoin miners are branching out into high-efficiency computing (HPC) and synthetic intelligence (AI) cloud companies and products.
Part 1: How Bitcoin Miners Are Tapping Into the AI Gold Speed
It’s been over a week since we closing shared insights on public Bitcoin miners, nevertheless rest assured, we’ve been busy! From expanding our crew to transferring role of job, loads has been taking place in the befriend of the scenes. However wager what? Now we hang some thrilling current aspects on the manner—I’ll dive into these in a separate post.
For now, let’s focus on about something that has been heating up in the Bitcoin mining world: HPC web webhosting. With AI being one in every of the freshest subjects in tech and investment circles, it’s no surprise that some Bitcoin miners are jumping on the improvement to diversify their revenue streams, especially as they navigate the challenges of the post-halving skills.
Which Bitcoin Miners Are Main in HPC Net webhosting & AI Cloud?
By embracing HPC and AI web webhosting, a few miners stand out. Core Scientific (CORZ), Iris Vitality (IREN), and Bit Digital (BTBT) were making headlines, whereas others devour Hut 8 (HUT), TeraWulf (WULF), and Bitdeer (BTDR) were a microscopic bit quieter on this front.
Let’s dive into the numbers👇
Bit Digital, despite being a smaller-cap firm (ranking #15 out of 30 by market cap on the time of writing), generated a primary $12.497 million in revenue from their HPC web webhosting in Q2 2024, leaving peers some distance in the befriend of. In line with their quarterly filing, they deployed 2,048 GPUs in early 2024 at a if truth be told finest files heart and are thinking about an upgrade to more moderen-skills NVIDIA GPUs. This upgrade resulted in a momentary lengthen in their enjoy picture, nevertheless the firm soundless bought a $30 million non-refundable deposit from the patron. With HPC web webhosting accounting for 43.17% of their total revenue in Q2, it’s particular that Bit Digital is transferring focal point from digital-asset mining—and they also’re doing stunning grand, especially in case it is possible you’ll per chance also take into accout their pass margins when put next with peers.
Core Scientific is illustrious for his or her partnership with CoreWeave. The firm has secured lengthy-term contracts to host CoreWeave’s HPC operations. Currently, Core Scientific dedicates 16MW to CoreWeave operations in Austin, Texas, with plans for further expansions across multiple sites, totaling 200 MW. This deal is expected to command in over $6.7 billion over the following 12 years. Nonetheless, HPC web webhosting soundless contributes ideal a slight fragment of their total revenue. No matter this, with their major investments in HPC infrastructure and ramped-up advertising and marketing and gross sales efforts, we are able to quiz this sector to change into an increasing number of foremost to their business.
Iris Vitality is one other miner making waves with its HPC/AI business. Simply the day gone by, they shared their FY 2024 outcomes, highlighting immediate insist in their AI cloud companies and products. In line with their presentation slides, IREN operates 816 Nvidia H100 GPUs, serving multiple prospects. Even supposing this sector contributed ideal 1.64% to their total revenue closing year, we are able to quiz its contribution to grow.
The Quieter Gamers in HPC Net webhosting
Hut 8 introduced in $3.365 million from HPC, accounting for nearly 10% of their total revenue. While they didn’t present slight print on their GPUs, we know their HPC operations span 5 locations in Canada, together with Mississauga, Vaughan, Kelowna, and two sites in Vancouver. There’s positively more to uncover here.
Hive is a pioneer amongst Bitcoin miners by HPC web webhosting. 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 insist. Nonetheless, we can hang to soundless present that their associated gross sales payments for HPC also grew from $147,000 to $1.955 million (+1229.93% YoY). As a consequence, their HPC pass margin dropped from 33.48% (Q2 2023) to 24.95% (Q2 2024).
Bitdeer is a inspiring case. No matter being Nvidia’s preferred partner in Asia since closing November and announcing the completion of their NVIDIA DGX SuperPOD H100 blueprint deployment in March, their most contemporary quarterly file doesn’t provide grand perception into how this has impacted their overall business. It’s something to assign an designate on.
TeraWulf has been advancing its efforts to purple meat up an infinite-scale HPC and AI mission on the Lake Mariner Facility. In line with their most contemporary quarterly file, TeraWulf dedicated an initial 2 MW block of energy to this mission, able to supporting thousands of GPUs. In Q2 2024, they bought a 128-GPU cluster from NVIDIA, financed by a main OEM. To purple meat up this mission, they’ve upgraded their web interconnection and designed a closed-loop liquid cooling blueprint for the GPUs – all to avoid losing particular that energy provide redundancy for 100% reliability.
In the following post “How Bitcoin Miners Are Tapping Into the AI Gold Speed (Part 2)” we known a few Bitcoin miners that were uncared for in our protection. Applied Digital, Mawson Infrastructure, and Soluna are also allocating resources to AI/HPC web webhosting.
