In a strategic pivot reflecting broader industry trends, Core Scientific, one of the largest Bitcoin mining operators in the U.S., is repurposing portions of its data center infrastructure to support artificial intelligence (AI) workloads. This shift comes amid declining mining profitability following the April 2024 Bitcoin halving and surging global demand for high-performance computing (HPC) capacity driven by AI innovation.
Based in Austin, Texas, Core Scientific has already deployed 16 megawatts (MW) of data center capacity to power operations for CoreWeave, a fast-growing AI infrastructure startup. The company now plans to expand this initiative significantly, converting up to 500 megawatts of its existing mining infrastructure into AI-ready computing environments over the next three to four years.
👉 Discover how energy-efficient data centers are powering the next wave of AI innovation.
The Decline of Bitcoin Mining Revenue
Bitcoin mining profitability took a major hit in late April 2024 with the network’s quadrennial halving event—a built-in protocol mechanism designed to reduce the rate of new Bitcoin issuance by 50% every four years. This ensures the total supply of Bitcoin remains capped at 21 million, preserving its deflationary nature.
The 2024 halving, the fourth since Bitcoin’s inception in 2009, reduced daily Bitcoin production from 900 BTC to 450 BTC. At prevailing market prices, this translated into an estimated $10 billion annual revenue loss across the global mining industry. For companies like Core Scientific, which rely heavily on block rewards for income, the financial pressure has been substantial.
With mining margins shrinking, firms are being forced to rethink their business models. Simply continuing to mine at scale is no longer sustainable without access to low-cost energy and highly efficient hardware. As a result, many are exploring alternative revenue streams—and AI-powered high-performance computing is emerging as a top contender.
Why AI Infrastructure Makes Sense for Miners
Bitcoin mining and AI computing share key technical similarities: both require massive amounts of computational power, graphics processing units (GPUs) or application-specific integrated circuits (ASICs), and access to reliable, scalable energy sources. Data centers built for cryptocurrency mining often already possess robust power delivery systems, cooling infrastructure, and physical security—all critical components for hosting AI workloads.
Core Scientific’s existing facilities, designed to support energy-intensive mining rigs, are now being retrofitted to accommodate GPU clusters used by AI companies for training large language models, running machine learning algorithms, and processing vast datasets.
“We are in regular discussion with our customer in this space and expect to build out this part of our business further over the course of the year,” said Adam Sullivan, CEO of Core Scientific, during the company’s first-quarter earnings call. “We aim to become a market leader and provide the digital infrastructure for high-performance computing.”
This strategic pivot isn’t just about survival—it’s about seizing a transformative opportunity. The global AI data center market is projected to grow at a compound annual growth rate (CAGR) of over 20% through 2030, driven by demand from tech giants, startups, and enterprise adopters alike.
👉 Learn how next-gen data centers are bridging blockchain and artificial intelligence.
Early Success and Future Outlook
Despite the challenges posed by the halving, Core Scientific reported $179.3 million in revenue** for the first quarter of 2025—a significant increase of **$58.6 million compared to the same period last year. This growth was fueled by rising Bitcoin prices earlier in the year and increased operational efficiency across its mining fleet.
However, company leadership emphasizes that future revenue diversification will be crucial. The planned conversion of 500 MW of mining capacity into HPC-ready infrastructure represents a long-term bet on the sustained expansion of AI adoption.
While full conversion is expected to take three to four years, Core Scientific anticipates generating incremental revenue as it onboards additional AI clients beyond CoreWeave. The company is actively engaging with other potential partners in the AI ecosystem, including cloud providers, research institutions, and enterprise tech firms.
Core Keywords and Strategic Positioning
This transition positions Core Scientific at the intersection of two powerful technological waves: blockchain and artificial intelligence. By leveraging underutilized or marginally profitable mining assets, the company is effectively transforming idle capacity into valuable digital infrastructure.
Key keywords driving relevance and search visibility include:
- Bitcoin mining
- Artificial intelligence data centers
- High-performance computing (HPC)
- Data center infrastructure
- Bitcoin halving
- GPU computing
- Energy-efficient data centers
- AI infrastructure
These terms reflect both technical specificity and growing public interest, making them ideal for organic search optimization while aligning with real-world user queries.
👉 Explore how blockchain companies are adapting to fuel AI advancements.
Frequently Asked Questions (FAQ)
Q: Why are Bitcoin miners shifting toward AI infrastructure?
A: Due to declining mining revenues after the 2024 halving, miners are repurposing their high-capacity data centers to serve AI companies that require similar energy-intensive computing resources.
Q: What is the impact of the Bitcoin halving on miners?
A: The halving cuts block rewards in half every four years. In 2024, it reduced daily Bitcoin issuance from 900 to 450 BTC, leading to an estimated $10 billion drop in annual industry revenue.
Q: How much computing capacity is Core Scientific converting for AI use?
A: The company plans to convert up to 500 megawatts of its current Bitcoin mining infrastructure for high-performance computing used in AI applications.
Q: Is Core Scientific completely abandoning Bitcoin mining?
A: No. While expanding into AI infrastructure, Core Scientific continues mining operations but is diversifying revenue streams to ensure long-term sustainability.
Q: What role do GPUs play in this transition?
A: Unlike ASICs used in mining, GPUs are highly effective for parallel processing tasks required in AI model training, making them ideal for repurposed data centers.
Q: How does this benefit AI companies like CoreWeave?
A: They gain access to pre-built, scalable data centers with robust power and cooling systems—reducing deployment time and capital expenditure.
This strategic evolution exemplifies how digital infrastructure providers can adapt to changing technological and economic landscapes. As AI demand accelerates and blockchain networks mature, companies like Core Scientific may well define the next generation of hybrid computing ecosystems—where crypto meets cognitive computing.