Bit Digital ends Bitcoin mining, pivots to Ethereum and AI

Bit Digital has exited its Bitcoin mining operations in a bid to reshape the company towards the evolving capital markets. The firm revealed that it has concentrated its capital and operations to build exposure on programmable financial rails and automation through Ethereum and AI infrastructure.

The crypto platform stated that it’s exiting businesses that no longer align with durable value creation. Bit Digital argued that its strategy is to deploy and operate assets rather than holding them on a balance sheet.

Bit Digital prioritizes its exposure to AI infrastructure through WhiteFiber

The company also stated that it exited BTC mining to reallocate capital toward infrastructure that offers greater flexibility, durability, and long-term relevance. The firm’s CEO, Sam Tabar, noted that Bitcoin mining was effective in its previous business strategy.

He believes that BTC mining has become a less efficient use of capital over time relative to opportunities that allow for active participation. Bit Digital also stated that it aims to use capital for active participation, yield generation, and operational leverage. 

Bit Digital has consolidated its crypto holdings into Ethereum and also prioritized its exposure to AI infrastructure through its majority stake in WhiteFiber. The firm believes the initiative will reposition the mining operator around infrastructure it can monetize and compound over time.

The U.S. company revealed that it first included Ethereum in its 2022 strategy, which transitioned to its central focus last year. Bit Digital also argued that the firm viewed ETH as a programmable infrastructure with long-term relevance across payments, compute, and capital markets.

Bit Digital acknowledged that it accumulated ETH at a measured cost basis last year and also leveraged its staking and network participation capabilities. By Q3 2025, the firm had more than 150,000 ETH on its balance sheet, the majority of which is staked to generate protocol-native rewards.

Bit Digital acknowledged that it wants to align its balance sheet to Ethereum’s liquidity, yield, and infrastructure participation for usage, uptime, and network activity. The firm noted that participation, fees, and coordination drive value accrual as Ethereum matures.

Bit Digital refuses to sell its ownership stake in WhiteFiber

The crypto platform believes that its majority ownership stake in WhiteFiber economically exposes the company to physical infrastructure that delivers reliable compute demand. Bit Digital argued that WhiteFiber represents its long-term exposure to intelligence infrastructure, which aligns with its long-term capital deployment strategy.

Bit Digital also confirmed that it will not sell any of its 27 million WhiteFiber shares in 2026 in any secondary offering or other discretionary disposition. The firm said it wants to remain a long-term owner in the AI platform as it continues to scale. 

The crypto firm also completed its first unsecured convertible note offering in August, with WhiteFiber raising nearly $160 million. The initiative preserved Bit Digital’s balance sheet flexibility, allowing the firm to raise capital at a conversion price that is set at a premium to its underlying asset value. 

Bit Digital acknowledged that its approach to capital allocation will remain disciplined as it focuses on deploying capital into infrastructure it seeks to own and operate long-term. Tabar previously revealed in June that the company was looking to exit mining as it pivoted to become a pure-play ETH treasury through partnerships and subsidiaries. The firm began offloading mining assets in the following months, while letting contracts expire and retiring outdated equipment.

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