Bitcoin mining saw its rise in popularity in the summer of 2010. This was in part due to more people realizing the many advantages cryptocurrencies could offer. Today, these digital currencies play a much larger role.
People are starting to use them similarly to fiat currencies. For instance, individuals can utilize crypto for online purchases, to acquire real estate, and even to pay for trips and holidays. One entertainment activity that has seen an increase in popularity is gaming and crypto gambling. Crypto gambling is where players play casino games and utilize digital currencies to place wagers.
They’ve become popular because crypto offers quick transaction times which translates to fast payouts for punters. As CryptoNews author Nick Pappas explains, the fastest payout online casino sites usually accept various forms of crypto, which is the fastest option, but also accept other more traditional forms of payment too. From wagering at online casinos to purchasing cars or luxury goods, crypto has become a popular and widely adopted payment method.
As the past indicates, crypto space is ever-evolving. Beyond cryptos' growing popularity and adoption, there are often new technological developments that come along that create a frenzy
within the landscape.
The allure of these developments is often fueled by the challenges that many crypto companies experience in their daily operations.
As such, they embrace these technological advancements so that they can continue to keep their heads above water. One example is the mining space, which continues to become even more challenging and competitive as time progresses.
A contributing factor to this is the Bitcoin halving event that takes place every four years. This is an occurrence that slashes the block reward in half. This is done to control the supply of Bitcoins that enter the market. Under the correct conditions, it increases the scarcity of digital currency while also boosting its value.
Many crypto organizations are feeling the financial pressure of the recent Bitcoin halving event that took place last April. This cut in industry revenues resulted in some companies shutting their doors, while others looked for different opportunities.
Therefore, this M&A wave that is currently taking place has to do with the exciting opportunities that Artificial Intelligence (AI) presents within the Bitcoin mining landscape. As such, bitcoin miners are expanding their horizons through mergers and acquisitions (M&A) with various companies in the AI sector.
This works perfectly as both sectors bring to the table what the other requires. To put this into perspective, Bitcoin mining facilities are large data centers that have access to extensive amounts of power usage. It is the perfect breeding ground for intensive AI operations.
In a recent press release, Core Scientific — one of the leaders in Bitcoin mining — announced that they have made a new agreement with Coreweave, a leading technology provider for AI models. The deal states that Core Scientific will deliver approximately 70 megawatts of additional infrastructure for the high computing operations of Coreweave.
For the second half of 2025, the company has planned to provide around 270 megawatts of infrastructure to Coreweave. Coreweave also has the option to further expand this with an additional 230 megawatts at other Core Scientific sites.
Core Scientific has estimated that in the next 12 years, this deal will generate an additional $1.2 billion in revenue. This deal will take place alongside other agreements the company has with Corewaeve that are projected to bring in more than $3.5 billion in revenue.
Another example of Bitcoin mining companies exploring AI opportunities is Hut 8. Recently, the company released a press statement that outlined their raising a strategic investment of $150 million from the firm Coatue to partner in building a next-generation AI infrastructure platform.
When taking all of the above into consideration it is easy to understand why crypto mining companies are partnering with organizations from the AI sector. AI institutions seek high computing infrastructure, while Bitcoin miners explore new ways to increase their revenue amidst sector uncertainties.
As it stands, both sectors have a lot to gain from these mutually beneficial partnerships. As time passes we are likely to see more of these types of collaborations.
