Bitfury exits mining, pivots to $1B push in AI and digital assets

Bitfury, the established Bitcoin-mining firm co-founded by Val Vavilov, is making a bold strategic shift — announcing a $1 billion investment fund that will steer away from pure crypto extraction and toward the next frontier of ethical technology.

According to Bitfury’s executive vice chairman, George Kikvadze, the company is now channeling “its winnings” from Bitcoin into mission-driven founders, particularly those working at the intersection of AI, decentralization, and self-sovereign identity.

Bitfury stops Bitcoin mining and invests billions in new tech

Bitfury began mining Bitcoin in 2011 and has helped establish some of the largest cryptocurrency mining companies, including Cipher Mining (CIFR) and Hut 8 (HUT), which are listed on the NASDAQ stock exchange. The company became one of the first firms to build large-scale Bitcoin mining operations and has influenced how the industry creates and trades other digital currencies.

However, mining Bitcoin today is more challenging than it was decades ago, as the cost of electricity has increased significantly over the past few years. Running big mining operations is very expensive. The price of Bitcoin has also dropped from $126,080 and is now below $90,000; as a result, miners are making very little profit. 

These challenges have prompted many Bitcoin miners to invest in new ventures, prompting Bitfury to shift its focus from mining to technology. The company aims to invest in sustainable and ethical technologies that will drive its future growth and have a positive impact on the world.

Vavilov stated that the company aims to support projects that are both profitable and contribute to societal progress. He explained that the company is focused on industries such as AI, quantum computing, cryptocurrency systems, and decentralized technology because people have more control over their data in these fields. The CEO stated that Bitfury will invest in projects that make a difference and can also remain profitable.

Bitfury gives money to support AI and decentralized technology

Bitfury will use its $1 billion fund to support new technologies in artificial intelligence, quantum computing, and decentralized systems, but it won’t be starting from scratch. The company had developed an immersion-cooling solution called LiquidStack that helps AI data centers run efficiently and stay cool, and co-founded a Netherlands-based chip company called Axelera AI. Bitfury already has the resources and experience it needs to switch its operations from mining to tech.

Vavilov stated that the company will focus on self-sovereign identity solutions, utilizing AI and decentralized systems to grant individuals complete control over their personal information and online identities. He explained that AI is the future of business, finance, and daily life, so the company wants to fund technologies that will create long-term value.

Bitfury has decided to invest in tech at a time when the difficulty of mining Bitcoin has increased by 52% over the past year. Stock prices for 20 of the 22 largest Bitcoin mining companies by market value have also dropped over the past month, so the industry is under a lot of stress. Miners like Bitfarms have even restructured their mining facilities to support operations.

Bitfury hopes to encourage other companies to abandon Bitcoin mining, as it no longer holds the same financial appeal it once did, and to focus on creating an ecosystem where ethical and sustainable technology can grow alongside financial success.

The company also demonstrates that any organization can transition from an outdated, challenging business model to a new and innovative strategy that is both practical and visionary, and utilize its experience to improve society.

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