Hive Digital is a prominent crypto miner. The company has announced that it will shift its focus to artificial intelligence (AI). The company has even rid itself of the name ‘Blockchain’. Despite this, the company will continue to focus on mining bitcoin (BTC). This makes the company known through a statement.
We’re excited to announce that today we officially changed our name to 𝗛𝗜𝗩𝗘 𝗗𝗶𝗴𝗶𝘁𝗮𝗹 𝗧𝗲𝗰𝗵𝗻𝗼𝗹𝗼𝗴𝗶𝗲𝘀.
The name better reflects our evolving focus on cloud compute technology, AI and the Web3 ecosystem.
— HIVE Digital Technologies (@HIVEDigitalTech) July 12, 2023
Strategic choice for AI
Hive Digital CEO Ayden Kilic says it’s a strategic choice. AI is clearly the hype of the moment in the tech world. Recent research shows that even crypto is not as popular as AI at the moment. Hive’s choice to shift focus to AI is therefore understandable.
“The change of our name and our strategic rotation are indications of our progressive trajectory as a company. Powerful computation, largely driven by GPU power, is growing exponentially right now.”
The company mainly uses Nvidia graphics cards (GPUs) for mining, making the transition to AI easy. The company will to use much of its GPU power, previously used for mining, to support AI applications. The development and training of AI models such as ChatGPT takes a lot of computing power.
“Once companies start adapting to the new AI world, they will look to companies like Hive to develop their AI applications. This will give them a competitive advantage in this new era of digital information.”
Crypto miners are having a hard time
Hive Digital indicated last year that it is increasingly difficult to be profitable with crypto mining. Until September last year, mining ethereum (ETH) was a lucrative activity in addition to mining bitcoin. However, since the Merge update in September, Ethereum is a proof-of-stake network and mining ETH is impossible.
With the upcoming Bitcoin halving, which will take place around April 2024, bitcoin miners are under even more pressure. After the halving, the rewards for validating BTC transactions will be halved. According to research, based on current data, half of the bitcoin miners will not survive the halving.