The structure in Corsicana, Texas, which began construction in 2024 and was designed as the world’s largest Bitcoin mining facility, is transforming into an AI factory just a year and a half later.
Two-thirds of the facility, once viewed as a Bitcoin “temple” in Texas, will now be used for artificial intelligence (AI) and High-Performance Computing (HPC) activities, utilizing its high energy capacity and infrastructure.
Due to the AI sector’s need for massive data centers and infrastructure capable of handling high energy consumption, at least nine Bitcoin companies—including Bitfarms, Core Scientific, Riot, IREN, TeraWulf, CleanSpark, Bit Digital, MARA Holdings, and Cipher Mining—have announced over the last 18 months that they are shifting part of their operations to AI services. Together, they have signed AI and HPC contracts exceeding a total value of $43 billion. Analysts note that companies have realized AI investment costs are lower, as they simply remove mining machines from already established facilities and replace them with GPUs provided by new tenants.
Mining Profitability Is Falling
While competition in Bitcoin mining has increased exponentially, the halving event in 2024, which cut the block reward by half, has further reduced profitability. The decline in Bitcoin prices has also put pressure on mining revenues.
According to an analysis by CoinShares, only a small number of mining companies remained profitable by mid-November. In contrast, the AI sector offered predictable revenue thanks to much higher profit margins and long-term contracts signed with major technology companies.
“AI Creates Much More Value Per Energy”
Bitfarms CEO Ben Gagnon argues that Bitcoin mining is still profitable but emphasizes that HPC “creates much greater value per unit of energy and provides this predictably for years.” For this reason, the company no longer finds it logical to make new investments in mining devices.
This rapid transformation from crypto mining to artificial intelligence indicates that for large facilities capable of high energy consumption, the real profitable area is no longer mining, but artificial intelligence.
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