Bitfury, a pioneering Bitcoin mining company established in 2011, is shifting its strategy to become a technology investment firm. The company has announced a new $1 billion initiative to back startups focused on ethical artificial intelligence and cryptocurrency.

A New Focus on Ethical Technology

The investment firm plans to begin deploying capital as early as the fourth quarter of 2025, using funds generated from its previous operations, successful investments, and a network of investors. The new initiative will concentrate on AI, quantum computing, and what it calls “transparent decentralized systems.”

Bitfury CEO Val Vavilov stated that the company’s mission is to bridge the gap between innovation and ethics by supporting founders who are building technologies that serve people. He noted a significant synergy between artificial intelligence and decentralized systems, adding that solutions for self-sovereign identity are another key area of interest.

This move isn’t entirely new territory for the company. Bitfury has prior experience in the AI sector, having developed the immersion-cooling solution LiquidStack for AI data centers and co-founding the Netherlands-based chip company Axelera AI.

Industry Headwinds Prompt Diversification

Bitfury’s strategic pivot reflects a broader trend within the crypto mining industry. As the cost and difficulty of mining have increased, many companies are diversifying their operations. Some, like Bitfarms, have even started converting their facilities to power AI infrastructure.

The decision comes as profitability margins in the sector continue to shrink. Over the last year, Bitcoin mining difficulty has risen by 52%, while the asset’s price has seen a significant decline. These challenging market conditions have negatively impacted the stock prices of most major Bitcoin mining companies, providing a strong incentive for veterans like Bitfury to explore new revenue streams.

Throughout its history, Bitfury was instrumental in the growth of the mining sector, having spun out major publicly traded companies like Cipher Mining (CIFR) and Hut 8 (HUT), which are now the second and seventh-largest Bitcoin miners by market capitalization, respectively.