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Bitcoin mining company Bitfury announced Wednesday it will exit cryptocurrency mining operations to launch a $1 billion investment fund focused on artificial intelligence, decentralized technology, and digital identity solutions.
The company, founded in 2011 and among the earliest large-scale Bitcoin miners, cited rising operational costs and industry pressures as factors in the strategic pivot. The decision reflects broader challenges facing the mining sector as electricity expenses climb and profit margins compress following Bitcoin’s April 2024 halving.
Bitfury Bitcoin mining began its journey in 2011, helping establish major players like Cipher Mining (CIFR) and Hut 8 (HUT), both NASDAQ-listed firms. Over the years, Bitfury became one of the first companies to develop large-scale Bitcoin mining operations, influencing how digital currencies are created, mined, and traded globally.
However, the landscape of Bitcoin mining has shifted dramatically. Rising electricity costs, coupled with Bitcoin’s price volatility—from a peak of $126,080 down to below $90,000—have squeezed profit margins.
Running massive mining operations has become increasingly expensive, prompting Bitfury Bitcoin mining to rethink its long-term strategy.
The $1 billion investment fund will back projects at the forefront of AI, quantum computing, and decentralized systems.
Val Vavilov emphasized that the focus isn’t just financial gain: “We aim to support technologies that are profitable and contribute to societal progress. People should regain control over their data and online identities, and this is where decentralized tech comes in.”
Bitfury Bitcoin mining is leveraging its existing assets to pivot seamlessly. The firm developed LiquidStack, an immersion-cooling system that enhances efficiency in AI data centers, and co-founded Axelera AI, a Netherlands-based chip company.
These moves position the company to transition from mining to tech investment without starting from scratch.
A key area for the fund is self-sovereign identity, where AI and decentralized systems allow individuals to fully control their personal data. “AI is redefining business, finance, and daily life. By investing in these technologies, Bitfury Bitcoin mining is creating long-term value for society and shareholders alike,” said Vavilov.
The strategic shift is timely. Mining difficulty has increased by 52% over the past year, and 20 of the 22 largest mining firms have seen stock declines recently.
Even industry stalwarts like Bitfarms are restructuring to survive, signaling that Bitfury Bitcoin mining’s move is both bold and pragmatic.
By exiting Bitcoin mining, Bitfury sets an example for other companies in the industry. The firm encourages peers to consider sustainable, tech-focused ventures instead of clinging to outdated and costly mining operations.
“Bitfury Bitcoin mining demonstrates that a company can pivot from a challenging business model to an innovative, socially conscious strategy,” Kikvadze explained.
“We are showing the world that ethical and sustainable technology can coexist with financial success.”
With this $1 billion fund, Bitfury Bitcoin mining is not only redefining its business but also reshaping the broader crypto ecosystem. By investing in AI, quantum computing, and decentralized solutions, the company is creating a roadmap for other miners and tech firms to follow—one that prioritizes sustainability, ethics, and long-term societal impact.
As Vavilov concludes, “Bitfury Bitcoin mining is no longer just about crypto extraction. It’s about empowering innovation, protecting data, and investing in technologies that truly matter.”
Bitfury Bitcoin Mining Shifts Gears as Industry Pressures Mount
Bitfury, once a dominant force in cryptocurrency extraction, is pivoting away from traditional mining as industry pressures intensify.
With rising electricity costs, higher network difficulty, and shrinking profit margins, Bitfury recognizes that sustaining large-scale mining operations is no longer viable.
By redirecting its resources into a $1 billion AI and tech investment fund, Bitfury aims to lead the sector toward ethical innovation, demonstrating that the future of crypto isn’t just in mining—but in leveraging technology to create long-term societal and financial impact.
