Michael Novogratz's Galaxy Looks to Turn Bitcoin Mining Into AI Computing as Revenue Falls
The bitcoin mining industry is shifting towards artificial intelligence (AI) computing to avoid losses. Galaxy Digital plans to convert its 800 megawatt (MW) power capacity to high-performance computing (HPC) in partnership with a U.S.-based hyperscaler firm. This transition allows miners to diversify revenue and enables AI firms to quickly scale operations. Galaxy's Helios facility in West Texas currently operates 200MW, with an additional 1.7 gigawatts under consideration. The move follows Bitcoin's fourth halving event, which halved mining rewards and intensified competition, squeezing profit margins. Other companies like Hut 8 and HIVE are also reallocating resources towards AI computation. Galaxy reported a 23% decline in mining revenue despite an 11% increase in total hashrate due to heightened mining difficulty and operational challenges.
