- AiOnX takes 77% share in US-based cryptocurrency miner
- The deal sees it take management of 15 data facilities within the US and Sweden
- The $500 million acquisition sees it safe entry to 1.3 Gigawatts of energy, an more and more scarce commodity for AI datacenters
AiOnX, a significant data center infrastructure developer targeted on hyperscalers throughout Europe, has taken a majority stake within the US-based cryptocurrency mining agency Genesis Digital Property.
The transaction, valued at $500 million, sees its guardian firm, SWI Group, take a 77% stake in GDA, and provides it management over 15 cryptomining data facilities throughout the US and Sweden – and maybe extra importantly, entry to 1.3 Gigawatts of accessible energy.
The settlement encompassing 15 data facilities throughout North Carolina, South Carolina, and Texas, in addition to two sites in Sweden.
A sooner buildout with prepared entry to energy
The transfer by SWI Group was reported by DataCenterDynamics, which stated a deal was within the works between SWI and a then-unnamed US cryptomining entity.
It appears to have been dictated by GDA’s entry to available energy, at the same time as most hyperscaler buildouts proceed to battle with their very own energy limitations, and as research point out it might finally stall AI datacenter progress by as early as 2030.
The explanation for GDA making for a comparatively no-brainer acquisition by SWI, thanks to its energy connectivity.
“Energy connectivity is probably the most invaluable commodity in digital infrastructure at the moment, and changing legacy cryptocurrency mining infrastructure to AI and high-performance computing is the very best and highest use of those belongings,” famous SWI founder and CEO, Max-Hervé George.
“We now have been investing in power-connectivity since 2020. This is what that thesis appears like at scale.”
This is not an remoted transfer, nonetheless, with many cryptocurrency miners now pivoting to or getting outright acquired by AI hyperscalers as demand for compute, and, in tandem, energy continues unabated as fashions get bigger over time.
The explanation is that not solely is cryptomining comparatively unprofitable in contrast to AI workloads that hire out GPUs below long-term contracts, however it is additionally inconsistent, provided that cryptocurrency costs have a tendency to fluctuate, making for an unpredictable payday for cryptominers, a lot of whom are closely infused with debt to cowl their scaling wants.
Whereas fashionable crypto ASICs can’t be repurposed for AI wants, the facility they devour, a lot of which is locked in by way of long-term contracts, is way more invaluable for AI datacenters since their energy wants are already taken care of and obtainable on-site, versus many in any other case formidable and time-consuming energy era tasks that some hyperscalers have immediately been compelled to put money into.
For context, as per estimates by Coindesk, AI contracts provide margins of as a lot as 85% with multi-year income visibility in tow, making cryptomining, at the same time as hashrates proceed to climb, whereas Bitcoin stays beneath $70,000, reflecting a broader crypto market that some really feel has already entered a bear-induced winter.
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