Bitcoin (BTC) mining firm Hut 8 has recently launched its GPU-as-a-service vertical, marking a significant step towards diversifying its revenue streams. The company has set up a cutting-edge GPU cluster in a tier-three data center in Chicago, featuring multiple Hewlett Packard Enterprise Cray supercomputers powered by 1,000 NVIDIA H100 GPUs.
In collaboration with HPE and AdvizeX, Hut 8 designed, configured, and commissioned the cluster under its subsidiary, Highrise AI. The company has inked a five-year agreement with an AI cloud developer, entailing fixed infrastructure payments and revenue-sharing arrangements.
Asher Genoot, CEO of Hut 8, expressed his enthusiasm about the launch of the GPU-as-a-service vertical, highlighting how it complements the company’s existing compute layer, which encompasses AI compute, Bitcoin mining, and traditional cloud services. The primary goal of this new vertical is to optimize returns on its power assets and digital infrastructure by expanding its compute layer to include energy-intensive technologies.
Jerome Boucher, Vice President and General Manager, HPC and AI Solutions, North America of HPE, commended the collaboration with Hut 8 and AdvizeX, emphasizing the delivery of top-notch high-performance computing solutions.
The escalating cost of Bitcoin mining, as evidenced by Hut 8’s Q2 report showing a near doubling of the cost to mine a BTC in just one year, has prompted mining firms to explore alternative revenue streams. TeraWulf reported a staggering 243.2% increase in energy costs alone, underlining the pressing need for diversification.
In response to this trend, Hut 8’s foray into AI and cloud computing aligns with similar moves made by its peers in the industry. Core Scientific recently announced a partnership to supply 70 megawatts to CoreWeave’s Nvidia GPUs, while Reuters predicts that 20% of Bitcoin miners’ power capacity will shift to AI by the end of 2027.
However, transitioning from Bitcoin mining to AI and cloud computing is not without its challenges. CleanSpark CEO Zach Bradford cautioned that building sophisticated data centers for AI endeavors can take up to three years, casting doubt on the readiness of many Bitcoin miners to make the pivot successfully.
In conclusion, Hut 8’s strategic move into the GPU-as-a-service vertical underscores the evolving landscape of the cryptocurrency mining industry, where adaptability and diversification are becoming increasingly vital for long-term sustainability.