Business · Companies · 2 hrs ago

Bitcoin miners face financial strain as they move into AI data centers

Bitcoin miners face financial strain as they move into AI data centers

Bitcoin mining companies are moving into AI data centers to seek better returns as mining becomes less profitable.

They are using electricity capacity they already secured to enter a fast-growing AI market.

But building data centers requires heavy spending, and the companies also face the burden of borrowing to fund the projects.

Their shares and finances are now under pressure as those costs mount.

An exchange-traded fund investing in bitcoin mining and digital-power companies has fallen 23% this year.

That reverses a 72% rise last year, which came amid enthusiasm for AI.

The shift has not yet eased the companies' financial strain.

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