⚡ Galaxy Pivots BTC Mining Assets Toward AI Computing
posted 7 Nov 2024
Faced with mounting competition in Bitcoin mining, Michael Novogratz’s Galaxy Digital is redirecting its focus. The company is now eyeing alternatives that could promise higher revenue streams.
The company’s Q3 2024 financial report reveals a non-binding agreement with an unnamed U.S.-based hyperscaler.
Galaxy Digital plans to repurpose its mining infrastructure to support high-performance computing initiatives.
Galaxy Digital Shifts Mining Focus. Source: Galaxy Digital
Hyperscalers are major data centers that supply significant computing capabilities to external enterprises, frequently serving the AI industry.
Located in Texas, Galaxy’s Helios mining facility has an installed capacity of 800 MW, with just a quarter currently in operation.
Helios has the potential to scale up to 1.7 GW, making it a prime contender for hosting high-performance computing capabilities.
Galaxy is repurposing Helios to seize the booming demand for AI computations.
The 2024 Bitcoin halving event, which halved miner compensation, has posed notable issues for various mining operations.
Galaxy’s Q3 financials revealed a 23% drop in mining revenue compared to the prior quarter, despite an 11% rise in total hashrate.
This decline in earnings illustrates the ongoing struggles miners face to sustain profitability in an increasingly competitive landscape.
Nevertheless, Galaxy managed to report a reduced net loss and a quarterly increase in operating revenue exceeding 30%.
This positions the company's actions as a sensible approach to optimization.
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