Galaxy Digital has partnered with a U.S.-based hyperscaler firm to repurpose its 800 megawatts (MW) of mining capacity to host high-performance computing (HPC) systems. This decision arises amid diminished profitability in the Bitcoin mining sector, a situation exacerbated by market pressures and a recent Bitcoin halving.

The New York-headquartered Galaxy has 200 MW of its power currently operational, with plans for an additional 1.7 gigawatts (GW) pending evaluation for permits. This strategic pivot reflects a broader trend where miners, facing stiff competition and profitability difficulties, are seeking refuge in AI computing—a sector that can utilize existing energy capacity more effectively than traditional mining.

This move marks a significant shift for Galaxy, as the mining industry grapples with reduced rewards and increased operational challenges. While Bitcoin's halving cut mining rewards substantially, the ongoing demand for AI capabilities presents a unique opportunity for diversification and growth.

As other firms like Core Scientific have already transitioned to similar strategies aimed at harnessing excess mining capabilities for AI workloads, Galaxy's initiative highlights a critical evolution in how cryptocurrency miners may adapt in the face of economic pressures.

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