Bitfury Launches $1B Fund to Exit Bitcoin Mining and Back New Tech

TLDR

• Bitfury has launched a $1 billion investment fund to shift away from Bitcoin mining.
• The company will now focus on artificial intelligence, quantum computing, and decentralized systems.
• Rising energy costs and a drop in Bitcoin prices have made mining operations less profitable.
• Bitfury has developed technologies like LiquidStack and co-founded Axelera AI to support this transition.
• The company plans to fund projects that promote self-sovereign identity and ethical data use.

Bitfury has launched a $1 billion tech fund to reduce its reliance on Bitcoin mining and target new innovation sectors. The company confirmed it will support projects in AI, quantum computing, and decentralized systems through this investment fund.

Bitcoin Mining No Longer Sustainable, Says Bitfury

Bitfury began Bitcoin mining in 2011 and became one of the earliest large-scale operators in the space. However, rising energy costs and falling Bitcoin prices have strained the mining model in recent years.

Bitfury’s executive vice chairman George Kikvadze, stated the company is using “its winnings” to fund mission-driven founders.  He emphasized that these ventures must focus on AI, decentralization, and self-sovereign identity.

The price of Bitcoin recently fell below $90,000, down from a previous high of $126,080.
This drop has sharply reduced mining profits, making operations difficult for even established players like Bitfury.

In the past month, share prices for 20 of the 22 largest Bitcoin mining companies have declined. This trend has placed pressure on miners to diversify or shut down unprofitable operations.

Strategic Investment in Ethical and Emerging Technologies

Co-founder Val Vavilov explained the fund will support companies driving social progress and long-term profitability. He said,

Bitfury plans to invest in quantum computing, AI, and decentralized infrastructure to build future-ready platforms. It will also focus on startups building systems for self-sovereign digital identity.

The company has already made progress in these sectors through initiatives such as LiquidStack, an immersion-cooling technology for AI data centers. Bitfury also co-founded Axelera AI, a chip company based in the Netherlands.

These assets provide Bitfury with a strong base for expanding beyond Bitcoin mining into deep-tech fields. This shift reflects both internal expertise and market conditions that favor innovation over extraction.

Vavilov said the future lies in AI, which will redefine business, finance, and personal data management. Therefore, Bitfury intends to align its strategy with that vision by funding transformative technologies.

Miners Adjust Operations Amid Market Pressures

Bitfury’s pivot comes after Bitcoin mining difficulty rose 52% in the past year. This increase has impacted profitability across the entire mining sector.

Companies like Bitfarms have responded by modifying facilities and cutting costs to stay viable. Bitfury, however, chose to redirect its capital and infrastructure into new areas.

The firm’s decision aims to demonstrate how companies can exit outdated models for more future-aligned ventures. Bitfury confirmed it will no longer prioritize Bitcoin mining in its core business operations.

Instead, it will focus on supporting ethical, sustainable, and decentralized technologies for the next wave of innovation. The $1 billion fund will be deployed globally, targeting startups aligned with these principles. Bitfury aims to influence peers to adopt similar transitions and to explore ethical technologies rather than resource-intensive Bitcoin mining.

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