Mining companies shift to AI/HPC business amidst hash rate updates

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The Bitcoin mining environment is undergoing a major turning point. As mining profitability drops to its lowest level in history in October, industry leaders such as Bitdeer, Bitfury, Canaan, Marathon, Bitfarms, and TeraWulf are accelerating strategies to move away from reliance on a single business.

Seriousness of Mining Difficulty Due to Hashrate Increase

As the network’s hashrate continues to set new records one after another, mining profitability is rapidly deteriorating. The rising difficulty and increased energy consumption are putting pressure on miners worldwide, especially in Malaysia where the situation is particularly severe. Incidents of electricity theft for cryptocurrency mining are occurring frequently, with losses exceeding $1.1 billion, highlighting the prominent issue of illegal mining activities spreading.

Diversification as a Business Strategy Shift

In response to these market changes, major mining companies and equipment manufacturers are shifting their business portfolios. They are actively investing in artificial intelligence (AI) and high-performance computing (HPC) sectors, securing large-scale funding, and participating in government energy projects to diversify risks. Through these strategic shifts, efforts are underway to build management structures that are less affected by the uncertainties of Bitcoin mining.

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