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Mugglehead Investment Magazine
Alternative investment news based in Vancouver, B.C.
Bitzero Raises $25M to Expand Sustainable Bitcoin Mining and AI Infrastructure
Bitzero Raises $25M to Expand Sustainable Bitcoin Mining and AI Infrastructure
Kevin O’Leary on the set of Shark Tank. Image from Christopher Willard via Getty.

Bitcoin

Bitzero raises $25M to expand sustainable bitcoin mining and AI infrastructure

The initiative is backed by Canadian investor and Shark Tank star Kevin O’Leary

Vancouver-based bitcoin miner, Bitzero Blockchain Inc. has raised CAD$25 million to expand its operations and pivot more aggressively toward high-performance computing (HPC).

The company announced on Friday that it plans to use the funds to acquire 2,900 Bitmain S21 Pro miners, with deployment set over the next four to six months. The company expects the upgrade to generate an additional CAD$10 million in revenue.

The funding marks a key step in Bitzero’s strategic shift from pure Bitcoin mining to high-margin, energy-intensive computing workloads. In addition to mining, the company is investing heavily in infrastructure that supports artificial intelligence (AI) and HPC applications. This move aligns with industry trends, as multiple miners are diversifying to reduce reliance on volatile crypto markets.

Backed by Canadian investor and Shark Tank star Kevin O’Leary, Bitzero operates data centers across North America and Europe.

The company has emphasized environmental sustainability from the outset. In 2022, it launched a zero-carbon mining initiative in Norway through a local government partnership. Since then, Bitzero has steadily built out its renewable-powered operations while expanding its services beyond Bitcoin.

The growth of AI has presented a natural on-ramp for companies with access to energy and hardware. GPU-intensive workloads like AI model training and inference are increasingly profitable. Accordingly, miners like Bitzero are repurposing or upgrading their infrastructure to support those workloads. The strategy allows them to generate additional revenue while weathering the cyclical nature of crypto markets.

Read more: Bitfarms gets $300M loan to diversify into high-performance computing

Read more: Alaska congressmen introduces new act to substantiate Bitcoin reserve

Bitzero has joined other companies in the pivot

Bitzero is not alone in this transition. Earlier this week, Bitfarms Ltd (NASDAQ: BITF) (TSE: BITF) announced its entry into the HPC and AI data center market. The company will leverage its energy portfolio in Pennsylvania as a competitive asset. As part of the transition, Bitfarms rebranded to reflect a broader focus on AI and HPC, while continuing core Bitcoin operations.

Furthermore, HIVE Digital Technologies Ltd. (CVE: HIVE) (NASDAQ: HIVE) was among the first miners to embrace this evolution. It began its pivot in 2022 and started reporting HPC-related revenue in 2023. The company’s early entry gave it a head start in capturing market share in the growing AI compute sector.

The industry’s pivot is driven in part by deteriorating profitability in traditional mining. Each Bitcoin halving event cuts block rewards in half, compressing margins across the sector. Additionally, rising electricity costs and increasing hardware maintenance needs have only added pressure. According to Fidelity Digital Assets, long-term mining success often depends on the ability to survive extended periods underwater.

In response, many miners have turned to energy-efficient data centers and HPC as alternative revenue streams. Additionally, the rapid growth of AI services has created a surge in demand for compute power. For miners already operating power-hungry infrastructure, this shift offers a clear opportunity to repurpose existing assets.

Furthermore, some firms have adopted a “Hodl” strategy — holding onto their mined Bitcoin in anticipation of price growth. That approach has paid off handsomely in recent years. In 2024 and 2025, Bitcoin has repeatedly broken all-time highs, most recently surging past $123,000. These gains have helped offset operating losses during previous bear markets.

 

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