Bitfury exits Bitcoin mining to focus on $1B AI and crypto

Bitfury has already declared that it is leaving Bitcoin mining to start a $1 billion fund in support of artificial intelligence and decentralized technology

ContentsBitfury stops mining amid rising costs and market pressure$1 billion fund to support AI and decentralized technologyIndustry shift toward ethical and sustainable technologyThe company intends to invest Bitcoin-generated profits in the ventures that would ensure a mixture of ethical innovation and financial opportunity.

The company, which has a co-founder Val Vavilov, announced it will focus on AI, quantum computing, and self-sovereign identity solutions investments. The step will represent a significant strategic change, following over 10 years of cryptocurrency mining.

Bitfury stops mining amid rising costs and market pressure

Bitfury has been instrumental since its initial inception in 2011 to develop large scale mining operations of Bitcoin. Other prominent miners that the company assisted to rise were Cipher Mining and Hut 8, which are listed on NASDAQ.

The cost of mining Bitcoin is now more expensive following the increase in electricity costs and operational costs. The fall of Bitcoin price between the value of more than $126,000 and less than $90,000 has also strained the profitability of the miners.

The situation in the industry, during which the increase in the mining difficulty has risen by 52% during the last year and stock prices of leading miners have declined, encouraged Bitfury to change its direction. The firm does not consider the mining as being a viable growth opportunity in the present day compared to the technology investments.

$1 billion fund to support AI and decentralized technology

The purpose of the new fund is that Bitfury will support mission-driven founders and projects that have a long-term impact on society. The company will specialize in AI data centers, quantum computing, and decentralized systems that will provide people with the ability to have control over personal data.

Bitfury already enjoys technical innovation experience, having created LiquidStack, an immersion-cooling system compatible with AI centers, and co-founding Dutch chip maker Axelera AI. This base facilitates the shift of mining towards investments in technology.

The tipping point, as stressed by CEO Vavilov, is the fact that the company will focus on actions aimed at achieving profitability and benefiting the self-sovereign identity and safe digital ecosystems. The approach is based on the notion that AI and decentralized finance and daily life will become the new reality.

Industry shift toward ethical and sustainable technology

The move by Bitfury is indicative of a larger trend in the crypto mining industry wherein firms are experiencing an increasing cost of operation and decreasing returns. The company hopes that its turnaround would get other companies to engage in technology-oriented, ethical investment practices.

Bitfury, by switching capital allocation to innovation, shows how businesses can change the traditional pattern of business to more sustainable business models that are progressive in nature. The company is still using its experience to ensure that it contributes to technologies that can help the society and bring value to it.

The relocation highlights an increasing emphasis on long-term influence, indicating that even despite the established companies in the crypto industry, it is possible to reinvent oneself and become a part of the new technological infrastructure.