Bitfury announced Tuesday it will invest $1 billion in AI and crypto startups beginning in Q4 2025. These funds will be sourced from previous operations, successful investments, and a network of investors. CEO Val Vavilov stated that the mission centers on closing the gap between innovation and ethics.
The company, which began mining Bitcoin in 2011, previously spun out NASDAQ-listed Cipher Mining and Hut 8, which are currently the second- and seventh-largest Bitcoin miners by market capitalization, respectively. This pivot toward "ethical emerging technologies" marks a significant strategic shift for the pioneering mining company.
Industry Context and Strategic Shift
Many Bitcoin miners have fully or partially exited the industry as mining costs and difficulty have increased. Some operators, like Bitfarms, have converted their sites to power AI infrastructure rather than continue cryptocurrency operations. This challenging environment has accelerated Bitfury's transition toward becoming an investment firm focused on emerging technologies with ethical frameworks.
Vavilov told Fortune that the firm will focus on AI, quantum computing, and transparent decentralized systems. He cited AI's rapid growth and the strong synergy between artificial intelligence and decentralized systems as key factors driving the strategic pivot.
Bitfury's Expertise in Emerging Technologies
Bitfury brings hands-on AI experience through LiquidStack, an immersion-cooling solution for AI data centers. The company also co-founded Netherlands-based chip manufacturer Axelera AI, demonstrating technical expertise beyond its previous Bitcoin mining operations.
Self-sovereign identity solutions enabled through cryptography represent another focus area for the investment initiative. Vavilov emphasized that blockchain technology will continue to play a significant role in society despite the company's shift away from mining.
Market Pressures Affecting Bitcoin Mining
Profitability margins in the Bitcoin mining sector continue to face pressure amid a 52% rise in mining difficulty over the last 12 months. The Bitcoin price also fell 26.2% from its peak of $126,080 set on October 6, contributing to sector headwinds.
Stock prices for 20 of the 22 largest Bitcoin mining companies by market capitalization declined over the last month. This challenging market environment has influenced Bitfury's strategic reorientation.