Bitfury pivots to launch $1B tech fund after 14 years of mining Bitcoin

Bitfury, a notable name in the Bitcoin mining industry since its inception in 2011, has announced a significant shift in its business strategy. The company will pivot from its core operations of mining Bitcoin to focus on technology investments. This strategic change involves a commitment of $1 billion to support ethical artificial intelligence (AI) and cryptocurrency startups. The announcement indicates a broader trend among Bitcoin miners moving away from traditional mining operations in response to rising costs and increasing competition.

Bitfury transitions from Bitcoin mining to technology investments

After 14 years of mining Bitcoin, Bitfury is transforming into an investment firm targeting ethical emerging technologies. The decision reflects a response to the evolving landscape of the crypto industry, where mining has become increasingly challenging due to rising energy costs and regulatory pressures. The company plans to allocate funds from its previous operations, successful investments, and a network of external investors to fuel this new direction.

Investment focus on ethical AI and crypto startups

Bitfury's new investment strategy will concentrate on ethical AI and crypto startups, with the goal of launching the fund in the fourth quarter of 2025. The company's CEO, Val Vavilov, stated that their mission is to bridge the gap between innovation and ethics by acting as a catalyst for entrepreneurs and investors who are developing technologies that benefit society and promote long-term sustainability.

Challenges in the Bitcoin mining sector lead to strategic shift

The Bitcoin mining sector has faced significant challenges recently, with mining difficulty levels increasing by 52% over the past year while Bitcoin's price fell by 26.2% from its peak. This combination of factors has pressured many miners, including Bitfury, to reconsider their business models. As a result, several mining companies are either scaling back their operations or diversifying into other areas, such as AI. Bitfarms, for instance, has converted its mining facilities to support AI operations, reflecting a broader trend in the industry.

Bitfury CEO discusses the future tech vision and market potential

Vavilov emphasized the importance of AI in their new strategy, noting the synergy between AI and decentralized systems. He mentioned that Bitfury has already made strides in the AI space, including the development of an immersion-cooling solution named LiquidStack for AI data centers and co-founding Axelera AI, a chip company based in the Netherlands. Additionally, the company is focusing on self-sovereign identity solutions enabled by cryptography, which could play a significant role in future technology landscapes. As Bitfury evolves, it aims to leverage its experience in both AI and crypto to create a robust portfolio of ethical technology investments.