Bit Digital is moving from a Bitcoin mining company to investing in Ethereum and AI-related strategies.
After fully functioning Bitcoin mining operations since 2020, Bit Digital is finally winding down to explore other monetizable opportunities, according to the official statement received by the shareholders.
“Mining was effective in an earlier business strategy, but over time it became a less efficient use of capital relative to opportunities that allow for active participation, yield generation, and operational leverage,” CEO Sam Tabar wrote on Thursday.
Tabar also mentioned the platform consolidated their digital asset exposure into Ethereum and AI infrastructure through its majority stake in Whitefibre, a shift that repositions them to tackle the concerns previously faced.
Bit Digital’s journey through Mining
Nasdaq-listed Bit Digital initially started with assets based in China and the US. and briefly mined ETH in 2022, the year it began its ETH accumulation and staking as per reports.
Before Ethereum switched its network model to proof-of-stake, it used proof-of-work (PoW), just like Bitcoin. Bit Digital began to explore, temporarily mining ETH, prior to the switch. They are also one of the first crypto mining firms to begin diversifying into high-performance computing under Bit Digital AI in the year of 2023.
Bitcoin mining to Ethereum strategy
Bit Digital is now positioning itself as a publicly traded gateway to Ethereum and AI infrastructure, as it believes Ethereum will become the core financial plumbing. Tabar first hinted at Bit Digital’s shift to a “pure-play” Ethereum treasury and staking company, effectively exiting mining, in June 2025, as it is cheaper, simpler, and more predictable for earning staking rewards.
In October, Bit Digital purchased an additional 31,057 ETH, with the investor demand rising to $135 million through convertible notes, showing a strong bet on Ethereum as a core asset.
Tabar further shared, “WhiteFiber represents our long-term exposure to intelligence infrastructure, and we view this ownership as a core strategic asset within our long-term capital deployment strategy, rather than a financial asset to be traded.”
According to Tabar, capital markets are increasingly focused on rewarding infrastructure that is productive, durable, and actively deployed. With Ethereum and AI, they further take Bit Digital with a system that enables settlement, coordination, and automation as they continue to expand.
