Edgy - The DeFi Edge 🗡️
Edgy - The DeFi Edge 🗡️|Aug 19, 2026 12:48
So, what happens when Bitcoin miners make more money from AI than mining Bitcoin? A Bitcoin mining company just made 5x more money renting out compute than mining Bitcoin. Almost every miner is going to announce a version of this pivot, and most of them won't be able to fund it. For years Mining used to be simple. Whoever can turn electricity into BTC cheapest gets to profit massively. But after the halving squeezed margins, many miners started asking a different question, “What else can we do with our power, land, cooling systems and data centers?” Well A.I. exploded, and AI companies were hungry for resources. So now Bitcoin mining companies like Core Scientific, IREN, Hut 8, TeraWulf, and others are converting mining infrastructure into AI/HPC data centers. The numbers are already showing the shift. Core Scientific generated around $136M from AI colocation compared to $27M from Bitcoin mining. TeraWulf generated roughly 2.5x more revenue from HPC/AI hosting than crypto mining. Meanwhile, neoclouds like CoreWeave, Nebius, and Applied Digital are seeing massive demand for GPU compute. For the simplest reason, Bitcoin mining created the perfect foundation for AI infrastructure. - Cheap power. - Large-scale facilities. - Cooling expertise. - High-density computing. The same assets that once mined BTC can now rent compute to AI companies. But If miners can earn better returns selling compute than securing Bitcoin, what happens next for BTC? Bitcoin mining isn’t disappearing, BTC is still the core asset. This transition alone isn't that easy. Building AI infrastructure is extremely expensive even if you have existing mining infrastructure. TeraWulf estimates around $8M-$10M per critical MW to build these facilities. A 100MW site can require close to $1B in capital before generating any revenue. The next evolution of Bitcoin mining might not be about mining more BTC. It might be about turning megawatts into long-term AI infrastructure contracts. Not sure what happens long term but this is a trend that I find alarming. What do u think?(Edgy - The DeFi Edge 🗡️)
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