Bit Digital Shifts Focus from Bitcoin Mining to AI and Ethereum

Bit Digital shifts focus from Bitcoin mining to AI and Ethereum investments.

The mining company Bit Digital plans to completely abandon the extraction of digital gold. It will focus on investments in ETH and AI-related strategies, reports The Block.

“Mining was effective under the previous business strategy, but over time it became a less profitable way to use capital compared to opportunities that allow active participation, income generation, and operational leverage,” wrote the firm’s CEO Sam Tabar.

He added that the company consolidated digital assets in Ethereum and focused on AI infrastructure through a stake in WhiteFiber.

“These decisions have refocused Bit Digital on an area we can exploit, monetize, and grow over time,” noted Tabar.

Bit Digital began mining Bitcoin in 2020. In 2022, it briefly mined Ethereum until its transition to the Proof-of-Stake consensus algorithm. At that time, the company also started accumulating and staking the second-largest cryptocurrency by market capitalization.

The firm was one of the first in the industry to diversify its business by betting on high-performance computing (HPC). Anticipating market trends, it launched Bit Digital AI in 2023.

In June 2025, Tabar suggested a complete withdrawal from digital gold mining. Over several months, the company sold off related assets, terminated hosting contracts, and decommissioned outdated equipment.

Simultaneously, Bit Digital expanded its presence in the AI and HPC segments through subsidiaries and partnerships. In August 2025, its firm WhiteFiber raised nearly $160 million during an initial public offering.

“WhiteFiber represents our long-term involvement in AI infrastructure. We view this ownership as a core strategic asset within our capital allocation strategy,” wrote Tabar.

Accumulating ETH

As of July, Bit Digital owned 153,546 ETH valued at $419 million at the current rate. Most of the coins are staked. According to The Block, the company’s mNAV ratio is 1.93, with BTBT shares trading at a 90% premium to the net value of Ethereum on its balance sheet.

For comparison, MicroStrategy’s similar indicator fell below one (0.86) amid declining quotes.

INSIGHT: Strategy’s mNAV dips to 0.86x at $143.19 per share. pic.twitter.com/3azL9cGCu4

— CoinGecko (@coingecko) January 30, 2026

In October, Bit Digital additionally acquired 31,057 ETH, using funds from a $135 million convertible bond issuance.

Miners Opt for AI

The shift to the AI and HP sector has become a trend in recent years. By November, 7 out of the 10 largest public miners reported revenues from this direction.

Diversification is economically beneficial. TeraWulf’s AI contract anticipates annual revenue of $1.85 million per 1 MW of energy, exceeding mining figures.

Stable cash flow and high profitability have become the main advantages for companies betting on neural networks.

In August 2024, the energy consumption of AI surpassed the costs of Bitcoin mining.