The pivot toward "ethical emerging technologies" marks a significant strategic shift for the pioneering mining company.
Crypto News
Bitfury announced Tuesday it will invest $1 billion in AI and crypto startups beginning in Q4 2025, with funds sourced from previous operations, successful investments, and a network of investors. CEO Val Vavilov said the mission centers on closing the gap between innovation and ethics.
The company started mining Bitcoin in 2011 and spun out NASDAQ-listed Cipher Mining and Hut 8, currently the second- and seventh-largest Bitcoin miners by market cap, respectively. The pivot toward "ethical emerging technologies" marks a significant strategic shift for the pioneering mining company.
Many Bitcoin miners have fully or partially exited the industry as mining costs and difficulty have increased. Some operators like Bitfarms converted their sites to power AI infrastructure rather than continue cryptocurrency operations.
Vavilov told Fortune the firm will focus on AI, quantum computing, and transparent decentralized systems. He cited AI's rapid growth and the strong synergy between artificial intelligence and decentralized systems as key factors driving the strategic pivot.
Bitfury brings hands-on AI experience through LiquidStack, an immersion-cooling solution for AI data centers. The company also co-founded Netherlands-based chip manufacturer Axelera AI, demonstrating technical expertise beyond Bitcoin mining operations.
Self-sovereign identity solutions enabled through cryptography represent another focus area for the investment initiative. Vavilov emphasized that blockchain technology will continue to play a significant role in society despite the company's shift away from mining.
Profitability margins in the Bitcoin mining sector continue to face pressure amid a 52% rise in mining difficulty over 12 months. Bitcoin price fell 26.2% from its $126,080 peak set on Oct. 6, contributing to sector headwinds.
Stock prices for 20 of the 22 largest Bitcoin mining companies by market cap declined over the last month. The challenging environment accelerated Bitfury's transition toward becoming an investment firm focused on emerging technologies with ethical frameworks.
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