Bit Digital exits Bitcoin mining to focus on Ethereum staking and AI infrastructure for steady long term yield.
Ethereum becomes the core balance sheet asset as staking rewards support active participation model shift ahead.
WhiteFiber IPO boosts AI compute exposure and positions Bit Digital for a durable infrastructure driven growth path.
Bit Digital has completely sold out of Bitcoin mining and shifted its operations to Ethereum and artificial intelligence infrastructure, per shareholder update.
https://twitter.com/johnmorganFL/status/2017340827236712883?s=20
The company said the decision reflects changing capital efficiency across crypto markets. Management now prioritizes assets that support active participation and recurring yield. Consequently, Bit Digital transformed its operations and balance sheet. The relocation is a strategic change that started a few years ago.
Exit From Bitcoin Mining Operations
Bit Digital entered Bitcoin mining in 2020 and expanded capacity across multiple regions. However, returns declined as competition increased and costs rose. Therefore, the company began reducing mining exposure over recent quarters. It sold mining assets, retired older machines, and allowed hosting contracts to expire.
Management said mining no longer justified capital deployment. Rather, the company shifted its investments to more long-term relevant infrastructure. This change is in line with larger trends of mining companies reviewing their models. Several firms now favor compute and data infrastructure over pure hash rate expansion.
Bit Digital also aimed to simplify operations during the transition. The company reduced operational complexity while improving capital flexibility. As a result, it exited businesses that no longer supported durable value creation. The strategy now centers on deployable and monetizable infrastructure.
Ethereum Becomes Core Balance Sheet Asset
Ethereum currently anchors Bit Digital’s digital asset strategy. The company consolidated all crypto holdings into ETH. Bit Digital sold all of its BTC and bought ETH worth almost $200 million. As of mid last year, Bit Digital held more than 153,000 ETH. Most of those holdings remain staked on Ethereum’s proof of stake network.
Management views Ethereum as programmable financial infrastructure. The firm sees long-term relevance across payments, computing, and capital markets. Therefore, ETH replaced Bitcoin as the company’s primary treasury asset. The company also focused on participation through staking and network activity.
Bit Digital expanded ETH holdings using equity proceeds. In October, it used $67.3 million from share sales to buy nearly 19,700 ETH. This approach supports yield generation rather than passive holding. By the third quarter of 2025, ETH holdings exceeded 150,000 tokens.
Expansion Into AI And High Performance Computing
Alongside Ethereum, Bit Digital expanded into artificial intelligence and high performance computing. The company launched Bit Digital AI to address rising computing demand. Management sees AI infrastructure as a stable and scalable revenue source. This expansion also diversifies business risk.
WhiteFiber operates as the firm’s dedicated HPC subsidiary. Its initial public offering raised almost $160 million. Bit Digital retains a majority stake with 27 million shares. The company plans to hold those shares through 2026.
WhiteFiber provides exposure to physical infrastructure that supports consistent compute workloads. Bit Digital believes this infrastructure delivers long-term monetization potential. Additionally, the firm completed an unsecured convertible note offering to maintain balance sheet flexibility. This structure allowed capital access at a premium conversion level.
Overall, Bit Digital continues reallocating capital toward Ethereum participation and AI infrastructure. The company now positions itself around assets it can operate and compound over time.