Bitcoin

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Bitcoin miner Bit Digital is diversifying. They're entering the AI infrastructure arena. This move aims to increase revenues and reduce dependency on the volatile bitcoin market, according to <a href="https://www.coindesk.com/business/2023/10/23/bitcoin-miner-bit-digital-diversifies-into-ai-for-substantially-higher-margin-than-mining/?utm_medium=referral&amp;utm_source=rss&amp;utm_campaign=headlines">coindesk</a>. 
Bit Digital struck a deal with an AI company. This deal could rake in over $250 million in three years. The miner plans to invest $35 million in GPUs. These GPUs will support their new AI clientele. 
<a href="https://ultramining.com/news/en/hut-8s-q2-2023-a-bitcoin-mining-marvel/">Crypto miners</a> face challenges. The ongoing crypto winter is shrinking their profits. This shift to AI and high-performance computing (HPC) is a solution. AI and HPC demand similar setups to mining. They need large <a href="https://ultramining.com/news/en/crypto-miners-shift-gears-ai-is-the-new-gold-rush/">data centers</a> and efficient infrastructure. 
Bit Digital already secured a client. They will provide cloud-based <a href="https://ultramining.com/news/en/kaspa-takes-the-lead-in-gpu-mining-sets-sights-on-transforming-pow-landscape/">GPU</a> resources. The deal could generate $27 million annually from 2024. If expanded, this could total $250 million in three years. 
The miner's recent earnings were impressive. They earned $9 million in one quarter. The annual revenue for 2022 was $32 million. 
The New York firm will source <a href="https://ultramining.com/hardware/">hardware</a> from xFusion Digital Technologies. They will purchase FusionOne HPC units for around $35 million. These units contain Nvidia's HGX H100 8-GPUs. Delivery is expected by the end of the year. 
Financing isn't an issue for Bit Digital. They plan to use cash, digital assets, and new equity. They won't need extra capital for this purchase. 
The company boasts strong financials. They had $20.8 million in cash as of September 30. Their digital assets totaled $50.7 million. 
Their AI venture promises high returns. It offers better margins than bitcoin mining and ether staking. The company believes the AI sector can sustain their core business. 
Other miners are following suit. Hive Digital, for instance, is repurposing GPUs for cloud services. They claim their AI operations are 15 times more profitable.

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