Mining Giants Ditch Bitcoin for AI As Prices Plummet

Bitcoin mining companies TeraWulf and Hut 8 have made significant comebacks from their previous struggles. In July, TeraWulf signed a $19 billion lease with Anthropic for its data center, while Hut 8 announced a $9.8 billion long-term deal to build an AI data center in Texas.

Until recently, these companies focused on Bitcoin mining, but rising operating costs and falling cryptocurrency prices forced them to adapt. They're now shifting their focus to leasing space and power capacity to AI enterprises.

Their business models have changed dramatically since the bankruptcy of Core Scientific, a major player in the industry that expanded rapidly during the 2020-2021 bull market but struggled when Bitcoin's price dropped.