Bit Digital Exits Bitcoin Mining, Goes All-In on Ethereum and AI Infrastructure

Bit Digital (Nasdaq: BTBT) said it plans to fully wind down its Bitcoin mining business, extending a shift it has been making toward an Ethereum-focused treasury model and AI-related infrastructure.

In a letter to shareholders on Thursday, chief executive Sam Tabar said mining no longer offers the best use of capital for the company. He framed the change as a move away from a business with shrinking efficiency toward activities that can generate yield and be scaled through assets the company can directly operate and monetise.

We are pleased to take these steps to materially diversify our business and enter a market with robust demand and growth expectations. This new venture is an excellent expansion of our platform. This business line aims to provide a non-correlated income stream that will help the Company weather potential downturns in its core bitcoin mining and ETH staking businesses.

Sam Tabar, Bit Digital CEO

Bit Digital said it has consolidated its digital-asset exposure into Ethereum while building its AI and high-performance computing (HPC) exposure through a majority stake in WhiteFiber.

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What Changes Operationally

Bit Digital entered Bitcoin mining in 2020, initially operating with assets in China and the United States. It also mined ETH briefly in 2022, before Ethereum transitioned to proof-of-stake, and later began accumulating ETH and staking it. 

The broader point is that Bit Digital is no longer positioning itself as a miner that depends on hardware cycles and hosting costs. It is aiming to be an operator of infrastructure tied to staking returns and data-center style compute demand.

Bit Digital reported holdings of 153,546 ETH as of July, valued at US$428.8 million (AU$656 million), with most of that ETH staked. The company’s ETH holdings and staking posture have become central to its valuation narrative: The Block’s data puts Bit Digital’s mNAV at 1.93, implying BTBT trades roughly 90% above the net asset value of its underlying ETH exposure.

In October, Bit Digital added 31,057 ETH using proceeds from an upsized US$135 million (AU$206.5 million) convertible note offering.

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