AI gold rush draws crypto firms away from Bitcoin

Here is a story making headlines in the economy: AI gold rush draws crypto firms away from BitcoinImage source, EnegixImage caption, The Ekibastuz Bitcoin mine was opened in 2020 and seen as a symbol of the cryptocurrency's riseByJoe TidyCyber correspondent, World ServicePublished21 minutes agoCompanies that once filled warehouses with computers to earn Bitcoin - a process known as mining - are now using that computing power for AI. Bitcoin mining companies invested large sums on giant banks of powerful computers as the price of Bitcoin rocketed in recent years. But those mining companies have faced falling rewards since the value of the cryptocurrency has slumped from its peak in October 2025.

Now many are pivoting to AI and signing deals with companies such as Anthropic - who are spending billions of dollars on the infrastructure needed to keep up in the AI race. Bitcoin mining and other key cryptocurrency terms explained Published5 JuneLike AI systems, Bitcoin relies on vast networks of powerful computers housed in data centres. Because Bitcoin operates without a central authority, these computers verify transactions and are rewarded with newly-created digital coins.

Economic Details

But the rewards have reduced and the value of coins has dropped since last year. One bitcoin was worth about $124,000 (£91,000) at its peak in October 2025, but has since fallen sharply. More recently, it has rallied to around $80,000 - meaning it is up almost 30% so far in August.

But, for companies that have already made the change, even that may not be enough to get them to return to the crypto industry, because the switch of use - once made - is expensive to undo. Industry analysts say Bitcoin mining companies have been pivoting to AI because they have years of experience in finding cheap electricity and efficiently running large data centres. TerraWulf, Ionic Digital, Core Scientific, Iris Energy, Bitdeer, Riot Platforms and Hut 8 are just some of the companies increasingly diverting investment and infrastructure from bitcoin mining towards AI.

Riot Platforms signed a $9bn, 20-year compute deal with Anthropic earlier this month. Figure caption, "The sound of money. Digital money" - inside Kazakhstan's giant crypto-mineCompany names and websites are changing to reflect the shift too.

Analyst Views

Applied Blockchain has become Applied Digital. TerraWulf's website once described the firm as an "infrastructure-focused bitcoin mining company". It now says it focuses on "next-generation AI and high-performance computing".

Enegix, which opened a huge Bitcoin mining site in Kazakhstan to great fanfare in 2020, is now pivoting too. "Today, we are moving confidently towards artificial intelligence and planning the gradual alignment of our energy and infrastructure capabilities, both in Kazakhstan and elsewhere, towards the development of AI infrastructure," said the company's chief executive Yerbolsyn Sarsenov.

Financial markets are tracking the development closely as investors assess the likely impact.