Crypto Hubs Transition to AI Data Centers

Rapid Summary

• coreweave is acquiring Core Scientific, a Bitcoin mining company, for $9 billion in an all-stock deal to accelerate AI data center construction and deployment.
• Key features of the acquisition:

– Core Scientific operates with 1.3 GW power capacity across 11 U.S. sites.
– Expected savings include $10 billion in lease reductions and $500 million annually by 2027.

• Transition from crypto mining to AI data centers is gaining traction due to better revenue prospects:

– GPUs used for AI workloads generate up to 90% EBITDA margins, significantly higher than Bitcoin mining’s slim returns.

• Industry shift highlights:

– Companies like Northern Data, HIVE Digital Technologies LTD, IREN, and Hut8 are moving toward AI-focused infrastructure setups.
– HIVE reported that running 10 MW of NVIDIA H100 GPUs yields revenue equivalent to operating a full-scale 100 MW Bitcoin mining facility.

– Worldwide investment in data centers increased by 51% Year-on-Year (YoY)* in reaching $455 billion this year alone..$.

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