Bit Digital Pivots from Bitcoin Mining to Ethereum and AI Infrastructure

Bit Digital, Inc. (NASDAQ:BTBT) is undergoing a significant strategic transformation, announcing its complete exit from Bitcoin mining operations. The company is now sharpening its focus on Ethereum treasury and staking, alongside expanding its artificial intelligence (AI) infrastructure through its majority stake in WhiteFiber.

Key Takeaways

• Bit Digital is fully winding down its Bitcoin mining operations.

• The company is increasing its investment in Ethereum treasury and staking.

• Expansion of AI infrastructure through its subsidiary WhiteFiber is a key priority.

• This strategic shift aims to leverage opportunities for active participation, yield generation, and operational leverage.

Strategic Realignment

In a letter to shareholders, CEO Sam Tabar explained that Bitcoin mining, while effective in an earlier business strategy, has become a less efficient use of capital compared to current opportunities. The company is reallocating its resources towards infrastructure that offers greater flexibility, durability, and long-term relevance.

"At the same time, we consolidated our digital asset exposure into Ethereum and prioritized our exposure of AI infrastructure through our majority stake in WhiteFiber," Tabar stated. "These decisions repositioned Bit Digital around infrastructure we can operate, monetize, and compound over time."

Ethereum Focus

Bit Digital has significantly increased its holdings in Ethereum (ETH), now possessing over 150,000 ETH, with the majority of these assets being staked to generate rewards. This move positions the company as one of the first public crypto firms to strategically pivot towards Ethereum rather than maintaining a Bitcoin-centric approach. The company also recently purchased an additional 31,057 ETH using proceeds from a $135 million convertible note offering.

AI Infrastructure Expansion

The company's commitment to artificial intelligence infrastructure is underscored by its majority ownership in WhiteFiber. Bit Digital views its stake in WhiteFiber as a core strategic asset for long-term capital deployment, not merely a financial asset to be traded. WhiteFiber, a high-performance computing (HPC) subsidiary, recently raised nearly $160 million in an initial public offering.

Financial and Corporate Developments

Bit Digital has been actively managing its capital structure to support this transition. The company completed an unsecured convertible note offering, which it described as an innovative financing method for its sector. In terms of corporate governance, Amanda Cassatt, CEO of Serotonin, has been appointed to Bit Digital's Board of Directors, effective January 1, 2026, while board member Xiashu Xiong has resigned.

This strategic realignment reflects Bit Digital's assessment of evolving market opportunities and its commitment to building a more productive and durable business model centered on Ethereum and AI compute.

Sources

• Brock Pierce-backed Ethereum treasury firm Bit Digital to fully wind down bitcoin mining operations, The Block.

• Bitmine Leadership Shift Raises Questions On Ethereum Bets And Valuation, Simply Wall Street.

• Bit Digital shifts focus from bitcoin mining to ethereum and AI By Investing.com, Investing.com.