Big Tech and Bitcoin Miners Team Up for AI Power

Bitcoin mining companies are making big moves into AI. IREN, a major player in Bitcoin mining, just signed a huge deal with Microsoft. The deal is worth $9. 7 billion over five years. IREN will provide Microsoft with powerful GPUs from Nvidia. These GPUs will be hosted in IREN's data centers. IREN isn't stopping there. They also made a $5. 8 billion deal with Dell Technologies. This is to buy more GPUs and related equipment. The company plans to pay for these deals using cash, prepayments from customers, and other financing options.This isn't the first time a Bitcoin miner has moved into AI. HIVE Digital started this trend in mid-2023. They now make good money from AI and high-performance computing services. MARA Holdings and Riot Platforms are also exploring AI opportunities. TeraWulf made a big splash with a $3. 7 billion deal with Fluidstack. This deal includes a 10-year colocation lease. It shows how serious these companies are about AI. IREN's shares went up after the Microsoft deal was announced. This shows that investors are excited about the company's new direction. It's a smart move for IREN to diversify its revenue streams. The Bitcoin mining industry is becoming more competitive and expensive.