Canadian crypto mining company HIVE Digital Technologies is embarking on an innovative project that involves using old Ethereum mining rigs to create generative art on Bitcoin’s blockchain. The CEO of HIVE, Aydin Kilic, sees this project as a demonstration of technical prowess for one of the largest miners in the crypto industry. HIVE plans to utilize its fleet of data-center-grade Nvidia GPUs, previously used for mining altcoins, to generate AI art using its own fine-tuned model of Stable Diffusion. The next step is to inscribe this art on the Bitcoin blockchain through the company’s hash power.
The project aligns with the launch of Ordinals earlier this year, a Bitcoin protocol that enables individuals to create NFT-like assets by inscribing data on individual satoshis, which are equal to 1/100,000,000 of a whole Bitcoin. This innovation has not only facilitated the art project but has also resulted in increased transaction fees for Bitcoin miners.
Kilic acknowledges that transaction fees from Ordinals inscriptions have slightly decreased in recent months. However, HIVE remains interested in this initiative and sees the potential it holds. Kilic compares the project to the precision and coordination demonstrated by jet fighter squadrons such as the Blue Angels. HIVE’s objective is to create an integrated AI and Ordinals project that leverages the company’s core competencies as a technology leader in AI and Bitcoin.
In addition to the art pipeline, HIVE is working with its custody providers to explore transactions involving uncommon satoshis discovered through Ordinals. Uncommon satoshis, which possess a premium value, refer to the first satoshi of each Bitcoin block. HIVE currently holds 272 of them.
The shift from proof-of-work to proof-of-stake by Ethereum prompted HIVE to seek alternative mining options. Developing a generative art pipeline using new technologies aligns with the company’s strategy of maximizing resources. HIVE, which became publicly traded in 2017 on the TSX Venture Exchange in Canada and later on Nasdaq in 2021, aims to capitalize on the potential of Ordinals.
Aydin Kilic echoes the sentiments of Michael Saylor, the co-founder and executive chairman of MicroStrategy, who also sees potential in Ordinals for app development. Kilic believes that Ordinals opens up new possibilities for companies like HIVE to experiment with Bitcoin in ways that were previously unimaginable.
With a market capitalization of approximately $477 million, HIVE’s shares currently trade at $5.66. As the company delves into the incorporation of generative AI art on Bitcoin’s blockchain, it continues to explore new avenues and technologies that maximize its resources.
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