[Edaily Marketin Soyoung Park Reporter] Energy deep-tech companies, which face long roadmaps to commercialization, are finding a breakthrough through Bitcoin mining. Their strategy is to secure initial cash flow using surplus electricity and use this as a springboard to expand their businesses into high-performance computing (HPC) and artificial intelligence (AI) data centers.
For energy startups that must endure massive initial investment costs and long payback periods, Bitcoin mining is serving as a stepping stone to turn their technology into a viable business. In South Korea as well, experts are advising that business models capable of generating stable cash flow during the pre-commercialization phase are crucial.
According to the global investment banking (IB) industry on the 26th, there are growing instances of global energy startups—which utilized Bitcoin mining as an initial power consumer and revenue source—reaching unicorn status.
With renewable energy sources such as solar and wind power, output is limited or surplus power is generated when power generation does not match demand. However, Bitcoin mining allows data centers to be located directly at power generation sites, enabling the immediate monetization of surplus power. Global energy startups have capitalized on this, utilizing cryptocurrency mining as an initial revenue stream when establishing their first revenue-generating models.
A prime example is Crusoe, a U.S.-based vertically integrated AI infrastructure provider. The company began in 2018 by converting surplus natural gas—which would otherwise have been flared at oil fields—into electricity to mine Bitcoin in modular data centers installed on-site.
Crusoe subsequently expanded its business into high-performance computing (HPC) and AI data centers. The company sold its Bitcoin mining business to NYDIG in March of last year. Following the sale, the company announced its expansion into vertically integrated AI infrastructure solutions. In the first tranche of its Series F funding round, which closed last September, Crusoe successfully raised $3.9 billion (approximately 5.1601 trillion won).
In Canada, earlier this year, Bitcoin mining hardware manufacturer “Canaan” launched a proof-of-concept (PoC) project to recover waste heat from Bitcoin mining facilities and use it to heat commercial greenhouses.
In Europe, there is the German company “Terahash Energy,” which utilizes the waste heat generated by Bitcoin mining as an additional energy source. Terahash supplies waste heat exceeding 70 degrees Celsius from a Bitcoin data center in Finland to the local district heating network. Last May, the company announced that it would establish its second data center, Aurora, in partnership with a Finnish district heating operator.
Bitcoin’s profitability fluctuates significantly depending on price and electricity costs. Furthermore, due to regulatory and environmental controversies, it is difficult to treat mining itself as a long-term business model. This is why global energy companies are utilizing Bitcoin mining methods only in the early stages.
An industry insider stated, “Global energy startups often use Bitcoin mining to raise funds initially and promote business models that utilize the waste heat generated from it,” adding, “Once these startups reach a certain scale, they tend to pivot—stopping Bitcoin mining and shifting to other revenue-generating structures, such as building large-scale AI data centers.”
Meanwhile, E-Daily, in collaboration with Korea Electric Power Corporation (KEPCO), will host the “Global Alternative Investment Conference in BIXPO (GAIC in BIXPO)” on November 5 at Multipurpose Hall 1 of the Kim Dae-jung Convention Center in Gwangju, South Jeolla Province. The event will be organized under the main theme “Tech Meets Capital: Energy Deep Tech Scale-up.”
On that day, experts representing the domestic and international energy industries will gather in one place. They will explore ways to scale up innovative technologies and businesses through the convergence of energy deep tech and global capital. They will also discuss strategies for investment opportunities and corporate incubation.
